India's core sector rises 7.1 percent

23 Apr, 2004

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.

Read Comments