Business/Economy

Eight major sectors saw an upward trend in November

Eight major sectors saw an upward trend in November

Latest data released by Ministry of Commerce and Industry this week showed that the activities in the eight core sectors of the economy surged up to a year high of 6.7 per cent in November, with growth being flagged by the steel and cement sectors.

The index of core industries had grown by 5 per cent last October. However, in November, with the cement sector growing at a record high of 17.3 per cent compared with a contraction of 1.34 per cent in October helped the cause.

The steel sector grew 16.6 per cent in November, which is also the highest growth the sector has seen since last October of 2016. It had grown 8.44 per cent in October 2017.

DK Srivastava, Chief Policy Adviser in EY India, commented: “The trend does not point to a recovery in construction, but more towards the demand created by public sector investment, mostly in roads.”

He also added: “A tangible trend is not there in the private sector, but this is a usually followed activity in the public sector, thus, it will take more time.”

Meanwhile, the coal sector fell down for the third consecutive month, contracting by 0.23 per cent in November. In the fertilizers sector, the growth slowed down to 0.27 per cent in November from 3 per cent in October of last year. The electricity sector saw a similar trend as it slowed to 1.85 per cent in November from 3.24 per cent.

The eight infrastructure sectors of crude oil, coal, natural gas, fertilizers, refinery products, steel, electricity, and cement constitute 40.27 per cent of the total industrial production.