Indian core industrial sector registered a growth of 5.1% in September, as compared with 2.3 per cent during August this year. It would help to improve overall industrial index production (IIP) numbers which declined in August. The six core industries contribute 26.7 per cent to IIP and the recovery of growth is a healthy sign for the economy. It is also good news for the government in the election year as it is tense over retrenchment drive by some companies following economic slowdown.

The six core industries include crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel. Coal and cement production did well in September by registering growth of 10.7 per cent and 7.9 per cent respectively. Growth of finished carbon steel and Petroleum refinery output declined to 2.8 per cent and 5.8 per cent as compared to growth in the last year.

Electricity generation also increased to 59,120 GwH in September 2008 as compared to 56,641 GwH in August. Total cement production stood at 14.36 million tons in September as compared to 13.31 million tons in August.

The overall growth of six core industries is still less than growth rate during the same period last year. However, the improvement is unprecedented due to global slowdown.