The Modi Government’s big infrastructure push is yet to translate into a pick-up on the ground, data released on Monday show.
Growth of the eight core infrastructure industries slowed to 2.3 per
cent in the first six months compared with 5.1 per cent in the
corresponding period last year.
The performance does not reflect the more than 60 per cent jump to
Rs.82,818 crore in the Government’s capital expenditure during
April-September this year.
This year’s Union Budget sought to shift the thrust of government
spending to capital expenditure, particularly in infrastructure, to
boost growth.
Led by fertilisers and electricity sectors, output of the eight core
infrastructure industries improved in September to 3.2 per cent from 2.6
per cent in August.
This growth, however, was not broad-based, with the two main industries, steel and cement, contracting in September. The output of steel shrank 2.5 per cent and that of cement declined 1.5 per cent.
The tepid performance could be a drag on India’s overall industrial
growth in the first half of the current year as the core industries
comprise almost 38 per cent of the index for industrial production.
India’s industrial production had picked up in August with growth at 6.4 per cent, the fastest pace since October 2012.
The data for industrial output growth in September is scheduled to be released next week.
The data released on Monday showed that the production of fertilizers grew 18.1
per cent in September, ahead of the rabi sowing, which is to have
started from October-end and will go on till December. That followed the
sector's robust growth of 12.59 per cent in August.
Almost 11 per cent more electricity was generated in September than in
the comparable period in 2014. The growth in the sector was 5.6 per cent
in August 2015.
Output of natural gas and refinery products increased less than a per
cent in September and crude oil production declined marginally,
shrinking 0.1 per cent in the period.
Source: The Hindu
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