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Lower Production of Crude Oil, Fertilisers Decelerates India’s April Core Sector Growth

The core sector index carries 40.27 per cent weightage of the items included in the index of industrial production

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Crude Oil, Fertilisers, India's, April
The index of eight core industries had risen 4.7 per cent in April 2018. Pixabay

Lower production of crude oil and fertilisers decelerated the output pace of India’s eight major industries in April to 2.6 per cent, official data showed on Friday.

According to the Ministry of Commerce and Industry data, the index of eight core industries had risen 4.7 per cent in April 2018. On a sequential basis, the core sector grew by 4.9 in March this year.

The core sector index carries 40.27 per cent weightage of the items included in the index of industrial production (IIP).

“The combined Index of Eight Core Industries stood at 127.5 in April, 2019, which was 2.6 per cent higher as compared to the index of April, 2018. Its cumulative growth during April to March, 2018-19 was 4.3 per cent,” the Ministry said in a statement.

Crude Oil, Fertilisers, India's, April
Lower production of crude oil and fertilisers decelerated the output pace of India’s eight major industries. Pixabay

On sector-specific basis, the output of refinery products, which has the highest weightage of 28.03, grew 4.3 per cent in April 2019 compared to the corresponding month of the last fiscal.

Electricity generation, which has the second highest weightage of 19.85, increased by 5.8 per cent.

Steel production, the third most important component with a weightage of 17.91, was up by 1.5 per cent during the month under review, whereas coal mining, with a 10.33 weightage, was higher by 2.8 per cent.

On the other hand, extraction of crude oil, which has a weightage of 8.98, declined by (-) 6.9 per cent during the month under consideration.

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The sub-index for natural gas output, with a weightage of 6.87, inched-lower by (-) 0.8 per cent.

Cement production, which has a weightage of 5.37, rose by 0.8 per cent in the month under review.

Fertiliser manufacturing, which has the least weightage of only 2.62, declined by (-) 4.4 per cent in April.

Crude Oil, Fertilisers, India's, April
On sector-specific basis, the output of refinery products, which has the highest weightage of 28.03. Pixabay

“Except electricity and to some extent refinery products and coal, all other segments of core sector have performed poorly in April 2019,” said Sunil Kumar Sinha, Director — Public Finance and Principal Economist India Ratings & Research (Fitch Group).

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“The government capex spending is the key driver of growth for core infrastructure industries because private corporate investment is down and out. With new union government in place India Ratings (Ind-Ra) believes much of the future performance of these core infrastructure industries would depend on what is there in store for them in the full budget which is expected to be presented in the month of July 2019.” (IANS)

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India Witnesses a Huge Drop in Mobile Speeds in April

In absolute terms, India's performance in mobile speeds has deteriorated from that of last year

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According to latest statistics, Norway has the fastest mobile internet speed.
A screen-grab of the app Speedtest.net used to gauge internet speed in Norway.(representational image) Wikimedia

India witnessed a dip in mobile speeds in April 2019 with its rank remaining at 68th position in fixed broadband speeds globally and has decreased in ranking to 121 in mobile speeds, Ookla, the company behind Speedtest, said on Monday in updates to its Speedtest Global Index for April 2019.

While India has maintained its position in fixed broadband with average download speeds of 29.25 Mbps, the country has witnessed a dip in mobile speeds with average download speed of 10.71 Mbps, as per the report.

According Ookla’s announcement in the beginning of 2018, India clocked 67th rank globally for fixed broadband speeds and 109th for mobile internet speeds.

In absolute terms, India’s performance in mobile speeds has deteriorated from that of last year.

FILE – Attendees take pictures of the new Huawei Mate X foldable 5G smartphone during the Mobile World Congress wireless show, in Barcelona, Spain, Feb. 25, 2019. VOA

The April Speedtest Global Index shows Norway at pole position globally for mobile internet with an average download speed of 65.41 Mbps. Singapore takes the top spot for fixed broadband with an average download speed of 197.50 Mbps.

Ookla Co-founder and General Manager Doug Suttles said in a statement: “Networks are extremely complex entities whose performance is impacted by everything from quality of physical infrastructure to the geographical regions they are placed.”

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“India has unique challenges due to both the country’s large geographic size and population. The number of people using a network at a given time is one of the biggest factors for network congestion and slow down. Overall, we believe they are doing an admirable job given the complexities of the market,” he added.

Ookla’s Speedtest Global Index compares internet speed data monthly from around the world. Data for the Index comes from the hundreds of millions of tests taken by real people using Speedtest every month. The company has 40 million active users in India conducting over 800,000 tests a day. (IANS)