After a relatively strong growth of 5.0 per cent in April,growth in the core sector again slipped a couple of notches in May growing just 2.8 per cent compared to 3.1 per cent in May last year. However,just like in April,cement,electricity and coal performed much better than they did last year. Growth in steel,crude oil and petroleum products,on the other hand,was much poorer compared to last year. Steel,however,has been doing better over the past couple of months compared to its performance late last year and the first few months of this year,when output mostly fell compared to the year-ago figures. Experts believe,this resurgence in certain sectors,especially cement,is reflected in the impact of governments stimulus packages on the overall economy. Barring the poor performance of crude oil and petroleum products,whose performance has always been rather erratic,this could be good news for overall industrial performance as well since growth in the core infrastructure sector is a good indicator of the general trend in industrial production it comprises 26.7 per cent of the index of industrial production (IIP). The IIP figure will be released in the second week of July by the Central Statistical Organisation. Overall growth in the core sector in April-May 2009-10 has been 3.9 per cent compared to 2.7 per cent during the corresponding period of the previous fiscal. Commenting on the figures,Ajay Shankar,secretary of department of industrial policy and promotion (DIPP),said he expects a good IIP figure in May. In May,industrial output is expected to be better. Domestic demand-driven industries like cement,consumer goods and FMCG are doing well, he said. The best numbers are for the cement sector.Cement has a multiplier effect. It is a driver of growth.
