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Lower and Declining Growth in Core Sectors in India

By sagarmedia on | Leave a Comment | Edit
The rate of growth of eight core sectors improved from 2.8% in 2008-09 to 6.6% in 2009-10. It moderated to 5.8% in 2010-11. In 2011-12(Apr-Feb), eight core sectors recorded a growth of 4.4% compared to a growth of 5.8% in the corresponding period of 2010-11. Lower growth rate during 2011-12 has mainly been due to a lower growth in crude petroleum, natural gas and steel sectors. Government has initiated several steps to augment the production of core sectors by promoting state of the art technologies and by augmenting resources for exploration and mining through private sector participation. To facilitate development of necessary infrastructure, Viability Gap Finding, under the Scheme for support to PPP, has been extended to capital investment in fertilizers sector, oil and gas storage and pipelines facilities. To remove the fuel supply constraints affecting the power generation , the government has advised the Coal India Limited to sign fuel supply agreements with the power plants. In the Budget 2012-13, full exemption from basic duty has been provided to fuels such as natural gas, liquefied natural gas, uranium concentrate etc. imported for power generation. Further, basic customs duty on surveying and prospecting machinery and instruments imported for use in the mining sector has been reduced. Full exemption from basic customs duty has been provided to coal mining projects. This information

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