New Delhi: The care line on the face of ruling dispensation at the Centre is quite palpable, which is already battling with the domino effect of downturn US economy and Eurozone crisis, as India’s eight core industries have registered a sluggish performance in December.

The growth rate of the eight core industries, which include coal, cement, natural gas, petroleum refinery and fertilizers, has been recorded as 3.1 percent in contrast to 6.3 percent for January 2010. The slackening output of crude oil, steel and natural gas is said to be the reason behind the poor growth.

For the April-December this fiscal, the growth was lower at 4.4 per cent compared to 5.7 per cent in the corresponding period of 2010-11 in wake of deceleration in investment.

The poor production of coal, natural gas and fertilizers affected the performance of core industries for the April-December, nine months period. Coal production contracted to 2.7 percent whereas natural gas to 8.8 percent. The fertilizer output declined to 0.5 percent.

The growth-rate of the crude oil production remained between 0 to 5.6 percent whereas growth rate of natural gas production was recorded between 0 to 10.8 percent. Only the cement segment expanded to 13.3 percent.

The eight core industries witnessed low production since August 2011. The growth rate for these industries was recorded as low as 0.3 percent by October 2011.  With a little improvement in November and then low growth rate in December the annual growth rate got affected.

The growth rate for April -November was recorded as 4.6 percent, whereas the growth for April-December was recorded as 4.4 percent.

JPN/Bureau