New Delhi : Unfavourable base effect, along with a contraction in crude oil and natural gas production sequentially decelerated India’s eight major industries’ output in July 2018. According to the Ministry of Commerce & Industry on Friday, the Index of Eight Core Industries (ECI) showed a rise of 6.6 per cent from a growth of 7.6 per cent in June.
However, on a year-on-year basis, July’s growth was higher than the rise of 2.9 per cent reported for the same period last year.
“The combined Index of Core Industries stands at 128.4 in July, 2018, which was 6.6 per cent higher as compared to the index of July 2017,” it said.
“Its cumulative growth during April to July, 2018-19 was 5.8 per cent.” The ECI index carries 40.27 per cent weightage of the Index of Industrial Production (IIP), which is the macro gauge for India’s factory output. On a sector-specific basis, refinery products, which has the highest weightage of 28.03 per cent, grew by 12.3 per cent in July 2018 compared to the same period last year.
Electricity generation picked up by 4.8 per cent. Steel production, the third most important component with weightage of 17.92, inched up by 6 per cent during the month, whereas coal mining, with a 10.33 weightage, edged higher by 9.7 per cent.