The growth of the central sector recovers to 1.3% in December

NEW DELHI: growth of eight recovered to 1.3 percent in December 2019 after remaining in the negative zone in the last four months aided by the expansion in the production of coal, fertilizers and refinery products.

However, the growth was less than 2.1% recorded in December 2018.

The production of crude oil, natural gas and electricity contracted in the month under review.

The sectors that registered positive growth were coal, refinery products and fertilizers.

However, the growth rate of the steel and cement sectors slowed to 1.9 percent and 5.5 percent respectively.

During the period from April to December, the central industries registered a 0.2% growth compared to 4.8% in the same period of the previous year.

The eight main sectors registered negative growth in the four months until November 2019.

Commenting on the data, ICRA Ltd said: Despite the recovery in the performance of the central sector, we expect the IIP growth to fall in December 2019 from the initial 1.8% in November 2019, led by the largest contraction in the automotive production and the year-on-year decrease in non-oil merchandise exports after a two-month gap.

These eight sectors comprise 40.27 percent of the weight of the items included in the PII.

comments