Core sector grows at 3.1%

Core sector grows at 3.1%

After a spate of bad macro-economic news last week, the government got some respite in a better than expected 3.1 per cent growth in core sector in July on the back of 0.1 per cent expansion in June.

This is the highest growth in the core sector four months. The core sector has almost 38 per cent weight in the Index of Industrial Production (IIP). This has taken the overall growth rate in core sector from April-July to 1.7 per cent this year against a high 6.3 per cent in same period last year.

 This revival in core sector growth was on account of strong expansion in steel, petroleum refinery products and electricity sectors, the official data showed.

 The steel sector saw the steepest rise in its output as its production grew 7 per cent against 1.1 per cent in same period last year. This was followed by electricity generation which grew at 5.2 per cent compared to 2.7 per cent in July last year and contraction in June.

 Experts said the upturn in expansion could lead to a positive growth in industrial production after straight two months of contraction.

 Petroleum refinery products registered growth of 5.1 per cent in July over a high 26 per cent in July last year.