Core sector clocks 2.9% growth in March

Six infrastructure sectors showed a growth of 2.9% in March, marginally higher than 2.2% in February, signalling an economic recovery round the corner. However, because of the slowdown in the second half of 2008-09, overall growth declined to 2.7% from 5.9% in the previous fiscal. Growth of 2.9% in March, 2009 is flat compared to that in March, 2008. Four out of six core infrastructure sectors — cement, coal, electricity generation, refinery products — showed positive growth in March, while steel and crude oil witnessed negative growth. While cement showed an impressive growth of over 10%, electricity and coal sectors expanded 5.9% and 5.2% respectively in March. Production of petroleum refinery products grew 3.3%. But, crude oil and steel production declined by 2.3% and 2.6% respectively. The core sector accounts for 26.7% of the index of industrial production. In 2008-09, all the sectors except crude oil showed a positive growth despite slowdown in the second half due to the global financial crisis. Cement and coal production jumped 7.5% and 8% respectively to all time high of 187.42 million tones and 487.54 million tones. Steel output went up by 0.4% to 53.5 million tonnes in 2008-09. Electricity generation growth remained positive.