Core sector rebounds

The country's infrastructure sector expanded at its fastest pace in nine months in June powered by robust electricity , cement and coal sectors, adding to the optimism over the economy's turnaround prospects.
Government data showed the key infrastructure sector spanning coal, crude oil, petroleum refinery , steel, cement, electricity, natural gas and fertilizer rose an annual 7.3% in June compared to a 1.2% growth in the year earlier period. It was higher than the 2.3% growth posted in May .
Growth during the April-June period was at a healthy 4.6% compared to a 3.7% expansion during the same year earlier period. Economists said the sharp rebound in June was also due to a statistical base effect which would play out for the industrial sector during the year. The strong core sector data comes as a shot in the arm for the Modi government which is battling to revive the economy and get the engines of growth roaring again.
Asia's third-largest economy has posted two successive years of sub 5% growth and the industrial sector had stalled due to a string of factors including policy delays and implementation hurdles.The UPA government's late rush to clear the backlog of stalled projects is expected to influence the sector in the months ahead. The NDA government's push to clear the approvals maze is also expected to help the sector emerge from the deep slowdown.
The crucial sector accounts for nearly 40% of the index of industrial production and the robust June numbers augurs well for industrial output. But economists said they would prefer to wait for more data to predict whether green shoots of recovery were visible on the economic front.