ET View: Growth slowdown a core problem
Whereas coal production went up in June by only 3.2%, electricity generation has gone up by a respectable 7.3%.
Growth is visibly slowing down in India. Core sector growth in June has collapsed to 0.2%, with the hydrocarbon segments — crude oil, natural gas and refining, which together account for about 44% of the sector — registering declines. Fertiliser has registered a 1.5% gain in June, but over April-June, the industry has declined by 1.1%.
Whereas coal production went up in June by only 3.2%, electricity generation has gone up by a respectable 7.3%. The other sector that has prevented collapse of core sector growth into negative territory is steel, which grew 6.9% in June and 13.7% in April-June.
Cement, which should be a big beneficiary of the government’s big push on roadmaking, grew a mere 1.2% over April-June and actually declined by 1.5% in June. It is time the government started to release its funds into the economy and activated its public-private-partnership plans for infrastructure.