26.2.10

Core industries grow 9.4% in Jan

Six core sectors, which act as a bellwether for industrial activity, expanded 9.4% in January riding on the back of a rising demand for cement and steel, strengthening voices that say the time is ripe for the government to start winding down some of the stimulus measures. The core sector growth follows an impressive 16.8% industrial expansion in December but India Inc reacted by urging the government to hold the stimulus withdrawal for at last a year to help industry consolidate these gains. A statement on Thursday said finished steel and cement expanded by 16.2% and 12.4%, respectively, in January against 3.2% and 8.3% last year. Crude output also grew 9.7% in the month under review after contracting 8.1% in January 2009. Petroleum refinery products expanded by 3.8% against a dip of 1.3% in the year-ago period. Similarly, electricity generation rose 5.6% in the month under review against 1.8% a year ago. Coal production, however, grew by 6%, only marginally lower than 6.7% registered in January 2009. Production of crude, cement and finished steel, petroleum refining operations, coal mining as well as electricity generation had grown by a meagre 2.2% in January 2009. In the April 2009-January 2010 period, the growth was 5.4% against 3% in the year-ago period.

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