Core sector expands by 6.4% in March, highest in 16 months

The eight core sectors expanded to 16-month high of 6.4% in March due to pick-up in refinery products, fertilisers and cement production.

The sectors - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprising nearly 38% of India's total industrial production, had shrunk to (-)0.7% in March last year.

It is the highest monthly growth since November 2014, when these sectors had expanded by 6.7%. During the fiscal 2015-16 as a whole, the eight core sectors grew by 2.7%, while it had expanded by 4.5% in 2014-15.

As per the data released by the government, output in refinery products jumped 10.8% as against (-)1.5% recorded in March 2015. Fertiliser production grew 22.9% in March as against 5.2% a year ago.

Similarly, cement output saw a jump of 11.9% while there was decline in March 2015. Power generation saw a significant increase (11.3%) in March 2016 as compared to the same month last year.

Coal production grew by 1.7%, though at a slower pace than 4.5% recorded in March 2015. Crude oil production shrunk in March by (-)5.1%. Natural gas output fell sharply by (-)10.5% year-on-year.