Riding double-digit growth in cement and coal output, the index of six core infrastructure industries expanded 6.5 per cent in June, the most in 16 months.Buoyed by this robust performance and given that the Core Six have a 27 per cent weight, economists expect positive news on the index of industrial production, which expanded 2.7 per cent in May. The latest core sector numbers are an improvement over the 5.1 per cent growth seen a year earlier, as well as the dismal 2.8 per cent seen in May 2009. In the three months ended June this year, the sector grew 4.8 per cent, against 3.5 per cent in the corresponding period last year.
This better-than-expected showing was aided by the base effect-the sectors had lower output in the year-ago period -- pushing up growth in June. Barring petroleum products and finished carbon steel, absolute figures in the four remaining sectors were lower than those in the previous month. Economists maintain that there are tell-tale signs of recovery in the economyHowever,India's chief statistician, Pronab Sen, maintained that the core sector data is not necessarily indicative of a revival.
This better-than-expected showing was aided by the base effect-the sectors had lower output in the year-ago period -- pushing up growth in June. Barring petroleum products and finished carbon steel, absolute figures in the four remaining sectors were lower than those in the previous month. Economists maintain that there are tell-tale signs of recovery in the economyHowever,India's chief statistician, Pronab Sen, maintained that the core sector data is not necessarily indicative of a revival.
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