Core sector output rises to 5.8% in Aug

The data comes on a day when the Reserve Bank of India kept the key interest rates unchanged, the fourth time in a row.

Stellar performance by the coal, steel and electricity sectors pushed the growth of eight core industries to a two-month high of 5.8 per cent in August. The core sector had grown 2.7 per cent in July.

The data comes on a day when the Reserve Bank of India kept the key interest rates unchanged, the fourth time in a row. High credit cost has been one of the major reasons for stalled investments in the country along with other factors and the industry has been asking for rate cut for quite some time in order to put economy back on growth trajectory.

According to the core sector data released by the commerce ministry on Tuesday, the cumulative growth during April-August this fiscal stood at 4.4 per cent. It stood at 4.7 per cent in August 2013.

During August, while the coal production increased by 13.4 per cent, double of the growth of 6.2 per cent in July, steel production saw an impressive growth of 9.1 per cent against a contraction of 3.4 per cent witnessed in July.

The core sector, which comprises coal, crude oil, oil refining, natural gas, steel, cement, electricity and fertilisers, accounts for 37.9 per cent in the Index of Industrial Production (IIP). The IIP crawled at 0.5 per cent in July as the manufacturing sector, which constitutes over 75 per cent of the index, contracted. The robust performance by the core sector is likely to get reflected in the IIP numbers due October 12.

Fiscal deficit hits 75% of BE in Aug

New Delhi: Despite subdued spending, the Centre’s fiscal deficit shot up to 75 per cent of its full fisc target in just the first five months of 2014-15 as lower than estimated receipts put pressure on the exchequer.

The Centre’s fiscal deficit was Rs 3,97,929 crore or 74.9 per cent of the Budget estimate between April and August 2014. Though it was significantly lower at 61.2 per cent of the BE by July end 2014, it was at the same level a year ago.

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Data released by the Controller General of Accounts on Tuesday revealed that the Centre’s revenue deficit was even higher at Rs 3,24,764 crore or 85.8 per cent of the full fisc target by August 31, 2014 as compared to 87.4 per cent of the BE a year ago. The Budget had set a target of 4.1 per cent of the fiscal deficit and revenue deficit at 2.9 per cent in FY15. ENS