December 03, 2008

Updates on core industries growth in India

India’s Core infrastructure industries' growth has accelerated to 8.7% YoY in February 2008, reviving hopes that industrial production would speed up and arrest an economic slowdown. Growth in coal, power and cement, 3 of the 6 industries that make up the core infrastructure sector, aided the healthy growth in February 2008 as compared to 7.6% in February 2007.

These industries, including steel, crude petroleum and petroleum refinery products, carry 26.68 weightage on the index of industrial production. Hence, they could influence higher industrial growth and in turn GDP expansion. However, in April 2007 to February 2008 period, infrastructure growth remained lower at 5.6% compared to 8.7% in April 2006 to February 2007 period due to less than 5% growth in the 4 preceding months this fiscal. The infrastructure sector had grown by a poor 4.2% in January 2008.