Core sector growth at 5.2%, 6-month high

New Delhi, Nov 1 (KNN) The core sector growth hit a six month high in September, giving some relief to the industry after sluggish growth in first quarter.

 According to the data released by the Commerce and Industry Ministry on Tuesday, the index of eight core industries coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity had grown up to 5.2% in September from 4.4% in August These eight industries accounts for 41% of the total the Index of Industrial production.

In April-June quarter, the GDP growth slumped down to 5.7% due to irregularities in the market because of the roll out of GST and demonetization but the current figures of growth of core sector suggests that the economy has gained momentum once again. The total industrial production had reached a nine-month high of 4.3% in August.

Aditi Nayar, principal economist ICRA said that the sequential pickup in core sector growth and inventory buildup prior to the festive season offset the negative impact of post-GST restocking and an unfavorable base effect on IIP growth in September 2017.

She said that the growth in cement output revealed by the revised data for August 2017 and the initial data for September 2017 is encouraging. (KNN/AG)