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India's core sector grew 7.1 percent in March from an year earlier boosted by strong growth in the refining, electricity and coal sectors, a government statement said on Thursday.
Figures released by the Commerce and Industry Ministry showed the core sector - spanning the crude petroleum, refining, coal, electricity, cement and steel industries - expanded 4.0 percent in the same month a year earlier.
The six infrastructure industries account for more than a quarter of India's industrial output and serve as an advance indicator of industrial growth.
The March figure comes after a phenomenal performance in February when the sector grew 11.3 percent which analysts said could not be sustained. They said growth would settle back in the 6.0-7.0 percent.
The core sector grew at a steady 5.9 percent in December and January and its growth is in line with the government's expectations of a strong fourth quarter.
The core sector's performance is likely to bring cheer to the ruling coalition which has been campaigning on its economic performance in the ongoing five-phase federal poll.
The core sector expanded 5.4 percent in 2003/2004 (April-March) compared with 5.6 percent growth in the same period a year earlier.
India, Asia's third-largest economy, is estimated to have expanded at more than 8.0 percent in 2003/04, aided by a rebound in the farm sector after the best monsoon rains in a decade. The economy grew four percent in the previous year.

Copyright Reuters, 2004

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