Output of eight core industries accelerates in July (Lead)

New Delhi Aug 31 (IANS) The growth in production in India s eight major industries accelerated during July when total output grew by 2.4 per cent in comparison with a 0.8 per cent marginal increase during the previous month official data showed on Thursday.

The Index of Eight Core Industries (ECI) representing the output of major industrial sectors like coal steel cement and electricity grew by 3.1 per cent in the corresponding month of the previous year.

"The combined Index of Eight Core Industries stands at 119.8 in July 2017 which was 2.4 per cent higher compared to the index of July 2016. Its cumulative growth during April to July 2017-18 was 2.5 per cent " the Ministry of Commerce & Industry said in the summary of the ECI for July.

The ECI index carries 40.27 per cent weightage of the Index of Industrial Production (IIP).

On a sector-specific basis refinery production which has the highest weightage of 28.03 per cent plunged by 2.7 per cent in July 2017 as compared with the corresponding month of last year.

However electricity generation which has the second highest weightage of 19.85 rose by 5.4 per cent last month.

Steel production the third most important component with weightage of 17.92 increased by 9.2 per cent during the month under review whereas coal mining with a 10.33 weightage inched up by 0.7 per cent in July 2017.

Extraction of crude oil which has an 8.98 weightage slipped by 0.5 per cent during the month under consideration.

On the other hand the sub-index for natural gas output with a weightage of 6.88 stood higher by 6.6 per cent.

Conversely cement production which has a weightage of 5.37 decreased by 2 per cent in July 2017.

Similarly fertiliser manufacturing which has the least weightage -- of only 2.63 -- dipped by 0.3 per cent.

--IANS
rv/dg