Core sector growth improves to 4.6% in May
New Delhi: In a silver lining for flagging Indian economy, eight core sectors posted a higher growth rate of 4.6 percent in May against a dismal 2.2 percent expansion rate in the previous month.
The infrastructure sector had grown 5.8 percent in May 2011.
However, the cumulative growth rate of infrastructure industries in April-May 2012 was lower at 4.2 percent, from 5 percent in the same period last year, according to the data released by the Commerce and Industry Ministry today.
The eight industries - coal, crude oil, natural gas, fertilisers, petroleum refinery products, electricity, cement and finished steel - have a weight of 37.9 percent in the Index of Industrial Production (IIP).
Economists said the improvement in May would have a positive impact on the Index of Industrial Production (IIP) numbers.
"The numbers are better than April. It would help in the improvement of the IIP numbers," Crisil Principal Economist D K Joshi said.
Industrial production declined by 3.5 percent in March mainly on account of contraction in manufacturing and mining output.
Hit by global woes and domestic problems, the economic growth rate slowed to nine-year low, both in the March quarter at 5.3 percent and for 2011-12 fiscal at 6.5 percent, prompting the industry to demand "immediate and bold action" to arrest slowdown.
Natural gas and fertiliser output contracted by 10.8 percent and 15.1 percent respectively during May.
Petroleum refinery products and crude oil production slowed down to 2.9 percent and 0.5 percent, from 4.5 percent and 9.8 percent respectively during May 2011.