Core sectors grow 7.4% in March

The country’s six key infrastructure industries grew 7.4% in March, rising from 6.8% in the previous month, raising prospects for a rebound in overall industrial growth. Government data released on Monday showed the six core sectors comprising crude oil, petroleum refinery, cement, electricity, finished steel and coal grew by 5.9% in 2010-11 compared to 5.5% in the previous year. In March 2010, the sector had grown 6.8%. Growth in the sector has remained sluggish in the past few months which has impacted overall industrial growth. The six infrastructure industries account for 26.7% of overall industrial growth. Economists said the data augured well for overall industrial output data for March which would be released later this month. Industrial output has remained fragile in the past few months as the impact of the central bank’s rate increases have hurt growth. Crude oil production grew 12.1% in March 2011 compared with 3.5% growth in the same month a year ago. In the full fiscal, crude production rose 11.9% compared to 0.5% during the same period of 2009-10. Petroleum refinery production grew 8.5% in March 2011 compared to a decline of 1.1% in March 2010.