India industries clock 7.1pc growth, fuel recovery hopes
India's core industrial sector grew by 7.1 percent in August, its best performance this financial year, official data showed, boosting economic recovery hopes.
The six key infrastructure industries grew by 7.1 percent in August compared with 2.1 percent in the same month a year ago, according to figures posted on a government web site Saturday.
The August growth was also much stronger than the 2.5 percent expansion posted in July.
The six core sectors -- cement, coal, electricity, steel, crude oil and petroleum refinery products -- have a combined weighting of 26.7 percent in India's industrial production index.
The core sector showing was the best so far during this financial year to March 2010. Growth for the April to August period was 4.8 percent compared with 3.3 percent in the same period a year earlier.
Cement grew by 17.6 percent, reflecting a much stronger construction sector.
Economists believe a stronger industrial performance will offset India's weakest monsoon in decades that has hit crop production during crucial crop-sowing months.
Crisil economist D.K. Joshi said the data suggested a "very healthy" overall industrial output performance.
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