Growth rate is on the negative side for the fourth month in a row.
Production in the eight core industries decreased by 1.5 percent in November 2019 against that was in November 2018. It is the fourth month in succession to have the growth rate of the monthly production of the core industries on the negative side.
As per the government data, the Index of the Industrial Production (IIP) of the Core Industries in November read 126.3. It was 128.3 in November of the previous year.
Of the eight, production of coal, crude oil, natural gas, steel, and electricity declined in November 2019 over November 2018. Refinery, fertilizer, and cement are the three sectors performed a positive growth rate.
Coal production in November 2019 fell by 2.5 percent over November 2018. For crude oil, the production came down by 6 percent, and natural gas dropped by 6.4percent in November this year over the corresponding month last year. Steel production in this November fell by 3.7 percent over November last year. Electricity production was 5.7 percent less this November than that in the previous November.
Production in refinery increased by 3.1 percent in November 2019 over it was in November 2018. Fertiliser registered a 13.6 growth rate, and cement registered a 4.1 percent growth rate in November 2019.
The eight core industries comprise 40.27 percent of the weight of the items included in IIP. The rate of growth in the core sector is still on the negative side, yet it has improved to -1.5 percent in November from -5.1 percent in September, and -5.8 in October this year.
Performance in Coal and Electricity is the indicator that the government would draw some solace from as it is into giving pace to India’s economy. In September growth rate Coal production was -20.5 percent which was -17.5 percent in October. In November it has improved to -2.5pecent. Similarly, Electricity production has improved to -5.7 percent of growth rate in November from -12.2 in October.