The core sector that is the combination of 8 major sectors such as cement, refining and coal, fertilizers, electricity, steel, crude oil and natural gas have witnessed all-time lowest growth figures in 5 months until December.
The core sector growth has come down to 4% in December 2017, which is the lower level of the last five months. This information has been received from official figures released on Wednesday. It has been reported that the growth of sectors such as coal, crude oil has become negative last month, which ultimately had a negative impact on the performance of the 8 core sector. The core sector growth in December was the lowest since July last year when growth was 2.9%. However, a month before that the government had announced a ban on a high-value currency note, which had a negative effect on business activities.
In demonetization, the government had banned the notes of Rs 500 and Rs 1,000. The core sector growth was 5.6% in December 2016. In the last year, the growth of coal and crude oil sector was 0.1% and minus 2.1%, respectively. In the last month, steel sector growth was 2.6%, while electricity generation increased by 3.3%. This year, the growth of the steel sector was 15.9% and the electricity sector growth was 6.4%. Refinery products, natural gas, fertilizer, and cement sectors also saw good growth last month.
At the same time, between April and December of the financial year, 2017–18, the core sector growth has come down to 4%, which was 5.3% in the same period a year ago. Core sector has a lot of impact on the Industrial Production Index (IIP) as it has a lot of weight age in it. This means that growth can also slow down in the industrial production index. This index reveals industrial activities.