Indicates signs of recovery: Anand Sharma
NEW DELHI: The stimulus packages offered earlier by the Government to counter slowdown in the economy have started yielding results with the economy showing signs of recovery as the six core industries led by coal and cement have posted a 6.5 per cent growth in June compared to 2.8 per cent in the previous month.
The core sector growth in the first quarter of the current fiscal works out to 4.8 per cent as compared to 3.5 per cent during the corresponding period last year. While coal output recorded an impressive growth of 14.7 per cent, cement production increased by 12.8 per cent in June. Reacting to the jump in growth of the core sector, Union Commerce and Industry Minister Anand Sharma on Thursday said the industrial growth had been showing signs of improvement during the last three months. “We want to ensure that this recovery continues and India returns firmly on the high growth trajectory,” he added. The six core industries — coal, cement, crude oil, electricity, finished steel and petroleum refinery products — grew by 5.1 per cent a year ago in June 2008.
Besides coal and cement, power generation increased by 7 per cent and crude oil by 4 per cent in June. Petroleum refinery output, however, declined by 3.7 per cent. “It is looking good. It is a sign of sluggish recovery. The stimulus packages and steps announced in the budget are having a positive impact on industry,” he said on the sidelines of a function here.
However, he said growth in the core sector did not mean that India had fully recovered from the impact of the global economic crisis.
Growth in petroleum refinery products declined by 4.1 per cent in the first quarter of 2009-10 as compared to 3.3 per cent in the same period last year. Crude oil production dipped by 1.3 per cent (minus 0.1 per cent), according to official data.
Coal output registered a growth of 12.7 per cent (8.4 per cent). Electricity generation grew by 5.8 per cent (2 per cent). Growth in cement output was 12.1 per cent (5.8 per cent).