Core sector output shows growth after contracting for four months
The rebound signals that the economy may have bottomed out in the second quarter and may see revival in the third quarter. The news should come as relief for the government ahead of the Budget and may dispel fears surrounding the Indian economy slipping into stagflation.
by PTI
NEW DELHI: Growth of eight core industries recovered to 1.3 per cent in December 2019 after remaining in the negative zone in the previous four months helped by expansion in production of coal, fertiliser and refinery products.
The growth was, however, lower than 2.1 per cent recorded in December 2018.
Production of crude oil, natural gas, and electricity contracted in the month under review.
Sectors which recorded positive growth are coal, refinery products and fertiliser.
However, growth rate of steel and cement sectors slowed down to 1.9 per cent and 5.5 per cent respectively.
During the April-December period, core industries recorded growth of 0.2 per cent against 4.8 per cent in the year-ago period.
The eight core sectors recorded negative growth in the four months to November 2019.