JOIN USEconomy in strong recovery mode
Cumulatively, in the first quarter of the current financial year (April to June this year), the
six core industrial sectors, with a combined weight of 26.7 per cent in the (IIP), improved their performance, recording a growth rate of 4.8 per cent as compared 3.5 per cent during the corresponding period last year.
The six core sectors — coal, cement, crude oil, electricity, finished steel and petroleum refinery products — posted a growth rate of 5.1 per cent in June last year.
The economy, which has been reeling under the ripple effect of a global slowdown, has started showing early signs of recovery with other economic indices like industrial production and overall duty collection showing better performances.
Industrial growth in May posted a growth rate of 2.7 percent, more than double that of April. Only in April this year industrial growth turned positive after being in the negative region almost every month since October 2008.
Commenting on the improved performance, Commerce and Industry Minister Anand Sharma said: “It is heartening that in recent months industrial growth is improving. We will take all measures to ensure that this recovery continues. If this trend continues we can hope that country’s economy will come back to path of high growth.”
Analysis of the performance of six core industrial sectors shows that coal output, with a weight of 3.2 per cent in the IIP, recorded an impressive growth rate of 14.7 per cent in June this year compared to 6.1 per cent in June last year. Coal production grew by 12.7 per cent during April-June 2000-10 compared to an increase of 8.4 per cent during the same period in 2008-09. Crude oil production (weight of 4.17 per cent in the IIP) registered a growth of 4 per cent in June 2009, compared to a growth rate of -4.7 per cent in June 2008.
However, petroleum refinery production (weight of 2 per cent in the IIP) declined by 3.7 per cent in June 2009 compared to a growth of 5.6 per cent.
On the other hand, power generation (weight of 10.17 per cent in the IIP) registered a growth of 7 per cent in June 2009 compared to a growth rate of 2.6 per cent the same month last year.
Cumulatively, it grew by 5.8 per cent during April-June 2009-10 compared to 2 per cent in the same period in 2008-09.
Cement production (weight of 1.99 per cent in the IIP) registered an impressive growth of 12.8 per cent in June this year compared to 6.6 per cent in same month last year.
Cumulatively, it grew by 12.1 per cent during April-June 2009-10 compared to an increase of 5.8 per cent during the corresponding period in 2008-09.
Finished steel production (weight of 5.13 per cent in the IIP) registered a growth of 5.3 per cent in June this year compared to 10.4 per cent in June last year.