New Delhi: In December last year, growth in eight core industries slowed to three-month low of 2.4 percent, adding to clamour for a rate cut by RBI.
Negative growth in crude oil, natural gas, fertiliser and steel has led to the dip in the overall growth rate of core industries. The eight core sector industries — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — had expanded by 4 percent in December, 2013.
In November, 2014, the growth was 6.7 percent. The core sector contributes 38 percent to the overall industrial production, a parameter that RBI takes into account while framing its monetary policy. Bankers believe inflation is under control and macroeconomic indicators are also conducive for a further rate cut of 0.25 percent, even as some expect the central bank to maintain a status quo.
According to HSBC Purchasing Managers Index, manufacturing growth also slipped to a three-month low in January on slower pace of order flows from domestic and global markets, raising hopes of a rate cut by the RBI in its policy review.
