Core sector growth at 6.8% in Nov
New Delhi: The eight core sectors expanded to a 13-month high of 6.8 per cent in November, driven by cement and steel, while analysts point to an infrastructure revival.
The infrastructure sectors - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - had witnessed a growth of 3.2 per cent in November 2016.
"A favourable base effect led to the sharp spike in cement and steel output in November 2017. Given the high growth in steel in the second half of fiscal 2017, it is unclear if the double-digit expansion in November will sustain going forward," Aditi Nayar, Icra's principal economist, said.
The output of refinery products, steel and cement rose 8.2 per cent, 16.6 per cent and 17.3 per cent, respectively, on an annual basis, according to data released by the commerce and industry ministry.
Crude oil and natural gas output too registered a positive growth during the month under review. On the other hand, coal output recorded a negative growth during the month.
Cumulatively, the growth in the eight core sectors during April-November this fiscal slowed to 3.9 per cent from 5.3 per cent in the same period last fiscal.