Eight Core Industries of IIP grew by 3.2% in September 2015; Fastest in 4 months

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Who: Eight Core Industries of IIP
What: Grew by 3.2% in September 2015
When: Announced on 2 November 2015
Why: Due to accelerated growth in Fertilisers & Electricity

The Department of Industrial Policy and Promotion (DIPP) on 2 November 2015 announced that the eight core industries of Index Industrial Production (IIP) grew by 3.2 percent in September 2015 as compared to 2.6 percent in September 2014.

The growth was calculated with base year 2004-05 and was the highest in four months since May 2015 that saw 4.4 percent growth.

However, the cumulative growth rate in the April-September period of FY 2015-16 was pegged at 2.3 per cent, lower than 5.1 per cent registered during the same period in FY 2014-15.

The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — comprises about 38 per cent of IIP.

The accelerated growth in September 2015 was attributed to sharp pick-up in fertiliser production and electricity generation.

Fertiliser and electricity generation sectors grew by 18.1 and 10.8 per cent in September 2015 as compared to (-)11.6 and 3.9 percent growth respectively in September 2014.

Growth in Core Sectors: Weights & Growth Chart

Core Sectors Weight in IIP Growth in September 2015 Cumulative Growth April-September 2015
Coal 4.38 % 1.9 % 4.2 %
Crude Oil 5.22 % Declined by 0.1 % 0.4 %
Natural Gas 1.71 % 0.9 % Declined by 2.1%
Refinery Products (93% of Crude Throughput) 5.94% 0.5 % 3.6 %
Fertilizers 1.25% 18.1 % 8.0 %
Steel (Alloy+Non-Alloy) 6.68% Declined by 5.9 % Declined by 0.03 %
Cement 2.41% Decline by 2.5 % Declined by 0.4 %
Electricity 10.32% 10.8 % 4.1 %