The index of industrial production (IIP) for July has shown a growth rate of 7% and the core sectors have also demonstrated an upward trend, commerce and industry minister Anand Sharma said while unveiling the Foreign Trade Policy on Thursday.
The IIP had recorded a growth rate of 7.8% a month ago in June. It had posted a growth rate of 7.1% a year ago in July 2008.
Attributing the 7% industrial growth in July to fiscal and monetary measures taken by the government and the Reserve Bank, Sharma said, these measures have had a salutary effect on our economy and we have seen some signs of recovery.
While the government had provided stimulus packages amounting to 3.5% of the gross domestic product (GDP) to promote industrial growth, the RBI reduced key policy ratios and rates releasing liquidity in the system to help economy battle the impact of the global financial crisis following collapse of the Americas iconic investment banker Lehman Brothers.
The core sector data released by the government on Wednesday, revealed that growth rate of six infrastructure industries eased to 1.8 % in July with the petroleum refinery sector showing poor performance during the month.
A 14.4 % contraction in petroleum refinery products constricted expansion of the six key industries in July, against 5.1% a year ago.
The core sector, which comprises petroleum refinery, crude oil, coal, electricity, cement and finished steel and accounts for 26.68 % in the countrys industrial production, had grown by 6.8% in June. Crude oil, though at lower rates, dipped by 0.4% in July against (-)3% a year ago.
However, coal expanded by 9.7 % against 5.5 %, electricity by 3.3% compared to 4.5%, cement by 10.6% against 5.5% and finished steel by 1.2% as against 6 %.
However, thanks to better showing in the previous three months, core industries improved performance by 4.1% for April-July period, against the corresponding months in the last fiscal.