India's December core industrial output slows to 2.6%

The output pace of India's eight major industries slowed down in December to 2.6 per cent, official data showed on Thursday. According to the Ministry of Commerce and Industry, the Index of Eight Core Industries (ECI) rose by 3.4 per cent in November 2018 and 3.8 per cent in December 2017.

The index carries 40.27 per cent weight of the items included in the Index of Industrial Production (IIP). "The combined Index of Eight Core Industries stood at 132.1 in December, 2018, which was 2.6 per cent higher as compared to the index of December, 2017. Its cumulative growth during April to December, 2018-19 was 4.8 per cent," the Ministry said in a statement.

On sector-specific basis, the output of refinery products, which has the highest weightage of 28.03, declined (-)4.8 per cent in December 2018 compared to the corresponding month of the last fiscal. However, electricity generation, which has the second highest weightage of 19.85, picked up by 4 per cent.

Steel production, the third most important component with weightage of 17.92, was up by 13.2 per cent during the month under review, whereas coal mining, with a 10.33 weightage, inched-up 0.9 per cent. On the other hand, extraction of crude oil, which has an 8.98 weightage, declined by (-)4.3 per cent during the month under consideration.

The sub-index for natural gas output, with a weightage of 6.88, edged-higher by 4.2 per cent. Cement production, which has a weightage of 5.37, rose by 11.6 per cent in December 2018.

Fertiliser manufacturing, which has the least weightage -- only 2.63 -- declined by (-)2.4 per cent during the month under review.