The growth of the eight core industries in India fell to 2.1% for the month of July 2019. Its cumulative growth during April to July, 2019-20 was 3%, as per data released by the government on Monday. These eight sectors, which are coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity grew by 7.3% in July 2018. These eight core industries are included in determining the Index of Industrial Production (IIP).
The growth was dragged down mainly by coal, crude oil, natural gas and petroleum refinery sectors. Crude Oil production declined by 4.4% in July, while its cumulative index declined by 6.2% during April to July, 2019-20 over the corresponding period of previous year.
Natural Gas production declined by 0.5% in July 2019 and its cumulative index declined by 0.8% during April to July 2019-20.
Petroleum Refinery production declined by 0.9% in July 2019 over July 2018. Its cumulative index declined by 2.0% during April to July 2019-20 over the corresponding period of previous year.
Sectors such as fertilizers, steel cement and electricity generation bucked the trend registering a growth in July. Fertilizers production grew by 1.5%, steel production by 6.6%, cement production by 7.9% and electricity generation by 4.2%.
This data comes days after India’s GDP growth rate slowed to a six-year low of 5% for the first quarter of FY 2019-20. It was down from 5.8% in fourth quarter of FY 2018-19.
In the first quarter of the previous financial year, the GDP growth was 8.2%. This effectively means that the country's growth rate has fallen by 3% in barely a year's time. This is the fourth successive decline in the GDP, from 8% in the first quarter of FY19 to 5% in this quarter. It is also the slowest growth since Q1 in 2013.
A statement by the NSO said that electricity, gas, water supply, utility services, trade, hotels, transport, communication and services related to broadcasting, public administration, defence and others recorded a growth of 7% in Q1. Agriculture, forestry and fishing grew at 2%, mining and quarrying grew at 2.7%, manufacturing at 0.6%; and construction and real estate grew at 5.9%.