SPRING IN THE STEP
The Economic Times, June 3, 2009, Page 1
Core’s best show in 10 months
Our Bureau NEW DELHI
APRIL is no longer the cruellest month. In the first month of the current fiscal year, the six core industries together clocked the fastest growth rate in 10 months, emboldening the prime minister’s key economic advisor to hint at the possibility of an upward revision in the economic growth forecast for the year.
Power, crude oil, refi
nery products, coal, cement and finished steel grew 4.3% year-onyear, recovering from a low of 1.1% in December 2008, according to data released by the ministry of commerce and industry on Tuesday.
The April figures have raised hopes of a brighter industrial output as these six industries have a combined weight of 26.7% in the Index of Industrial Production.
“The growth in core sectors is on expected lines. The upside risk for economic growth projections made by EAC is emerging with a stable government coming to power and business confidence slowly returning,” said Suresh Tendulkar, chairman of the Economic Advisory Council to the prime minister.
The EAC had earlier projected a growth rate of 7%—plus or minus 0.5%—for 2009-10.
April’s figures are the highest since last July when the global financial meltdown pushed the Indian economy into rough waters. Consequently, the growth rate dipped to 2.7% in fiscal 2008-09 against 5.9% in 2007-08. Coal, followed by cement, clocked the highest growth while the annual growth rate in steel production moved into positive territory after a month’s gap.
Economists that ET spoke to forecast that the revival in cement and steel production on the back of higher public spending will pick up further post-April. Data on cement despatch for May from major manufacturers, including Ambuja Cement, Grasim Industries and its subsidiary UltraTech Cement, showed robust growth. However, the regular lull in construction activity during monsoon is likely to dampen this momentum thereafter.
SURESH TENDULKAR
CHAIRMAN, ECONOMIC ADVISORY COUNCIL TO PM
The growth in core sectors is on expected lines. Upside risk for growth projections made by EAC is emerging with a stable govt coming to power and business confidence slowly returning
ADI GODREJ
GROUP CHAIRMAN, GODREJ
Both urban & rural growth numbers are upbeat and we are recording strongest growth in recent years. Political stability and expected fiscal stimuli have lifted consumer confidence
SANJEEV CHADHA
CHAIRMAN & CEO, PEPSICO INDIA
The beverages arm has been clocking unit case volumes growth of 30%, with both carbonated and non-carbonated drinks posting healthy growth
The Economic Times, June 3, 2009, Page 1
Core’s best show in 10 months
Our Bureau NEW DELHI
APRIL is no longer the cruellest month. In the first month of the current fiscal year, the six core industries together clocked the fastest growth rate in 10 months, emboldening the prime minister’s key economic advisor to hint at the possibility of an upward revision in the economic growth forecast for the year.
Power, crude oil, refi
nery products, coal, cement and finished steel grew 4.3% year-onyear, recovering from a low of 1.1% in December 2008, according to data released by the ministry of commerce and industry on Tuesday.The April figures have raised hopes of a brighter industrial output as these six industries have a combined weight of 26.7% in the Index of Industrial Production.
“The growth in core sectors is on expected lines. The upside risk for economic growth projections made by EAC is emerging with a stable government coming to power and business confidence slowly returning,” said Suresh Tendulkar, chairman of the Economic Advisory Council to the prime minister.
The EAC had earlier projected a growth rate of 7%—plus or minus 0.5%—for 2009-10.
April’s figures are the highest since last July when the global financial meltdown pushed the Indian economy into rough waters. Consequently, the growth rate dipped to 2.7% in fiscal 2008-09 against 5.9% in 2007-08. Coal, followed by cement, clocked the highest growth while the annual growth rate in steel production moved into positive territory after a month’s gap.
Economists that ET spoke to forecast that the revival in cement and steel production on the back of higher public spending will pick up further post-April. Data on cement despatch for May from major manufacturers, including Ambuja Cement, Grasim Industries and its subsidiary UltraTech Cement, showed robust growth. However, the regular lull in construction activity during monsoon is likely to dampen this momentum thereafter.
SURESH TENDULKAR
CHAIRMAN, ECONOMIC ADVISORY COUNCIL TO PM
The growth in core sectors is on expected lines. Upside risk for growth projections made by EAC is emerging with a stable govt coming to power and business confidence slowly returning
ADI GODREJ
GROUP CHAIRMAN, GODREJ
Both urban & rural growth numbers are upbeat and we are recording strongest growth in recent years. Political stability and expected fiscal stimuli have lifted consumer confidence
SANJEEV CHADHA
CHAIRMAN & CEO, PEPSICO INDIA
The beverages arm has been clocking unit case volumes growth of 30%, with both carbonated and non-carbonated drinks posting healthy growth
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