Economic Slow Down: An Empirical Study of Indian Core Industries Performance

Abstract

Reflecting a slowdown in the economy, the growth rate of eight core infrastructure sectors dipped to 2% in March and 4.3% during 2011-12 on account of poor performance in crude oil and natural gas. The growth rate of eight industries like crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel etc. have a weightage of 37.9% in the Index of Industrial Production (IIP), in March 2012 moderated to 2% from 6.5% in the same month last year. India’s GDP growth slows down to 6.1% in the third quarter of 2011-2 over the corresponding quarter of the previous year the lowest in 2 years. The impact of economic slowdown has been felt in all section of industry including agriculture and service also. The figure makes central statistical organization’s (CSO) forecast of 6.9% growth in the financial year ending march 2012 look optimist given the slippages in agriculture and manufacturing sectors, it will be difficult for GDP to recover much ground in January-March period the undefined GDP during the 1st 9 month of 2011-12 has grown to 6.9% only way below 8.1% growth recorded during the same period a year ago. This empirical study highlights the performance of Indian core industries during the economic slowdown. Secondary sources have used to analyse the paper.

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