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Growth rate of the industrial sector (comprising mining & quarrying, manufacturing, electricity and construction) is projected to decline to 5.2 per cent in 2016–17 (from 7.4 per cent in 2015–16). A modest growth of 0.4 per cent was seen during April-November 2016–17. This was the ‘composite effect’ of a strong growth in electricity generation and moderation in mining and manufacturing. In terms of ‘use-based classification’, basic goods, intermediate goods and consumer durable goods attained moderate growth. Conversely, the production of capital goods declined steeply and consumer nondurable goods sectors suffered a modest contraction during this period.
Infrastructure industries: The eight core infrastructure supportive industries (coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity) that have a total weight of nearly 38 per cent in the IIP registered a cumulative growth of 4.9 per cent during April-November, 2016–17 (compared to 2.5 per cent during April-November, 2015–16). The production of refinery products, fertilizers, steel, electricity and cement increased substantially while production of coal, crude oil and natural gas fell during the period. Most indicators of infrastructure related activities showed expansion—thermal power grew with 6.9 per cent while hydro and nuclear power generation contracted marginally.
Corporate sector: Corporate sector (as per RBI, January 2017) had a sales growth of 1.9 per cent (2nd quarter of 2016–17) as compared to near stagnant growth of 0.1 per cent in 1st quarter. The growth of operating profits decelerated to 5.5 per cent in 2nd quarter of 2016–17 from 9.6 per cent in the previous quarter. Growth in net profits registered a remarkable growth of
16.0 per cent in 2nd quarter of 2016–17, as compared to 11.2 per cent in 1st quarter.