Core sector rebounds, posts fastest growth in nine months The countrys infrastructure sector expanded at its fastest pace in nine months in June powered by robust electricity , cement and coal sectors, adding to the optimism over the economys turnaround prospects. Government data released on Thursday showed the key infrastructure sector spanning coal, crude oil, petroleum refinery , steel, cement, electricity, natural gas and fertilizer rose an annual 7.3% in June compared to a 1.2% growth in the year earlier period. It was higher than the 2.3% growth posted in May . Growth during the AprilJune period was at a healthy 4.6% compared to a 3.7% expansion during the same year earlier period. Economists said the sharp rebound in June was also due to a statistical base effect which would play out for the industrial sector during the year. The strong core sector data comes as a shot in the arm for the Modi government which is battling to revive the economy and get the engines of growth roaring again. Asias third-largest economy has posted two successive years of sub 5% growth and the industrial sector had stalled due to a string of factors including policy delays and implementation hurdles. The UPA governments late rush to clear the backlog of stalled projects is expected to influence the sector in the months ahead. The NDA governments push to clear the approvals maze is also expected to help the sector emerge from the deep slowdown. The crucial sector accounts for nearly 40% of the index of industrial production and the robust June numbers augurs well for industrial output. But economists said they would prefer to wait for more data to pre dict whether green shoots of recovery were visible on the economic front. April-June fiscal deficit at $49.2bn Indias fiscal deficit during the first quarter (April-June) of 2014-15 touched Rs 2.97 lakh crore ($49.2 billion), or 56.1% of the full-year target, government data showed. The deficit was 48.4% in the corresponding period during the previous fiscal. The fiscal deficit was Rs 5,08,149 crore or 4.5% of the GDP in 2013-14. Fitch retains Indias rating Mumbai: Global agency Fitch Ratings on Thursday said it has retained the `BBB- sovereign rating--the lowest investment grade--on India and a revision will depend on governments efforts to usher in bold reforms.
Posted on: Fri, 01 Aug 2014 11:21:43 +0000
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