Core sector clocks to 6.8% growth rate

Riding high on the back of robust performance by the steel and cement sectors, the country's infrastructure sector output growth rose to a 13-month high at 6.8 percent in November, which augurs well for overall industrial growth in the country, according to stats released by the commerce and industry. The core sector —spanning across coal, cement, steel, fertilizer, electricity, refinery products, natural gas and crude oil, is factually higher as compared to 5 percent recorded in the previous month and also higher than the 3.2 percent clocked in November 2016 and also higher than the cumulative growth during April to November recorded at 3.9 percent. A favorable base effected spike in the expansion of cement and steel contributed to the uptick in growth of the core industries. Even as four of the eight industries (coal, natural gas, fertilizers, and electricity) recorded a sequential dip in growth, said principal economist at ratings agency ICRA, Aditi Nayar. Echoing this view point economic affairs secretary Subhas Chandra Garg stated that steel and cement growth at very high rates of 16.6% and 17.3% indicate restoration of the production in these sectors over pre-demonetization levels.