8 core sectors production drops 0.1% in March; worst performance in 15 months

Eight core industries registered a negative growth of 0.1% in March, the lowest performance in 15 months, due to a steep decline in production of steel, cement and refinery products.

The output had expanded by 4% in March 2014. The previous low logged by the core industries was in October 2013 at (-) 0.6%. The growth of eight core industries -- coal, crude oil, natural gas, refinery products, fertiliser, electricity, steel and cement -- was 1.4% in February 2015.

For the full 2014-15 fiscal, the production growth of eight sectors also slowed down to 3.5%, from 4.2% in previous financial year ended in March, 2014. The eight sectors contribute 38% to the overall industrial production, a parameter that the Reserve Bank takes into account while framing its monetary policy.

In March 2015, production of steel declined by 4.4% and of cement by 4.2%. Refinery products' output contracted 1.3% while natural gas by 1.5%, according to the data released by the Commerce and Industry Ministry.

However, coal production rose by 6%, crude oil by 1.7% and fertiliser output by 5.2% in the last month of 2014-15 fiscal. Electricity generation grew by 1.7% in March 2015 compared to 5.4% in the same month last year.