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Infrastructure Grows 6.5%

Signs of economic recovery got bolstered today

The signs of economic recovery cemented the gains further after infrastructure sector grew in May and now in June too it has grown by 6.5 per cent – the figure for the previous month was 2.8 per cent.

For the current fiscal’s first quarter the growth that has been registered is 4.8 per cent while in the corresponding period last year it was 3.5 per cent.

Here is the jump by the six core sectors individually: Coal output jumped by 14.7 per cent, while cement output grew by 12.8 per cent, power generation by 7 per cent and crude oil by 4 per cent and steel production rose 5.3 per cent. The only negative was petroleum refinery output which fell by 3.7 per cent.

These are the signs that industrial activity is improving and gaining steam holding out hope for a faster economic recovery after the slowdown that has hit India since 2008. Especially heartening is the fact that coal and cement have registered double-digit growth.

The infrastructure sector accounts for a fourth of India’s industrial output.