Core sector growth revived in May , clocking fastest pace in six months, led by a turnaround in electricity, oil refining, steel and cement sectors, bringing some cheer for policymakers who have been battling a sluggish industrial sector.
Government data showed the core sector, which spans electricity , coal, steel, cement, refinery production, natural gas, crude oil and fertilizers, rose an annual 4.4% compared to a contraction of 0.4% in April.
The sector accounts for 38% of the index of industrial production and should augur well for the industrial output data due later in the month. The industrial sector has been facing headwinds for the past several months due to a string of factors.
The government has unveiled several measures to revive stalled projects and got them off the ground and analysts say the impact of the policy measures would be visible in the months ahead.
But economists say the trend has to sustain to signal a firm recovery .
Government data showed the core sector, which spans electricity , coal, steel, cement, refinery production, natural gas, crude oil and fertilizers, rose an annual 4.4% compared to a contraction of 0.4% in April.
The sector accounts for 38% of the index of industrial production and should augur well for the industrial output data due later in the month. The industrial sector has been facing headwinds for the past several months due to a string of factors.
The government has unveiled several measures to revive stalled projects and got them off the ground and analysts say the impact of the policy measures would be visible in the months ahead.
But economists say the trend has to sustain to signal a firm recovery .
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