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August core sector growth inches to 5.8%

Growth in the coal output was up 13.4 percent against 6.2 percent month-on-month. The government April-August core industries growth came in at 4.4 percent (YoY)

Core sector growth for the month of August picked up with eight core sector industries growing by 5.8 percent against 4.7 percent in same month last year. The July core sector data was 2.7 percent.  

Growth in the coal output was up 13.4 percent against 6.2 percent month-on-month. The government April-August core industries growth came in at 4.4 percent (YoY).

Crude output and natural gas output recorded growth of 4.9 percent and 8.3 percent respectively in August, according to the data of the Commerce and Industry Ministry.

However, the cement output was up only 10.3 percent versus 16.5 percent in July.

Experts believe that the overall core sector growth of 5.8 percent is a positive for the economy given that it forms 37 percent of the index of industrial production.

According to  Yes Bank chief economist Shubhada Rao, the numbers are good but the internals are even better. Electricity and coal are doing good and steel is adding to the party.

“These are leading sectors for future activities and overall, this should help support trajectory getting positive going forward,” she adds.

Going ahead, the growth trajectory looks much positive, she concludes. 

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