BackIndia's February core sector growth at 11-month high of 5.5%
During February, coal and electricity output grew in double digits, while crude, natural gas and steel output contractedS&P Global Ratings has cut its estimate for India’s gross domestic product growth to 3.5% from 5.2%
PremiumNEW DELHI: India’s eight infrastructure sectors grew at an 11-month high of 5.5% in February. In March, the government imposed a nationwide lockdown as a result of covid-19 outbreak.
During the reporting month, coal and electricity output grew in double digits, while production of crude oil, natural gas and steel contracted.
The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP)
Most forecasters have sharply cut their growth projections for India for the financial year 2020-21 beginning 1 April.
On Monday, S&P Global Ratings cut its estimate for India’s gross domestic product (GDP) growth to 3.5% from 5.2%, as it expects the damages to the economy from the covid-19 pandemic for the Asia-Pacific region to be as severe as that of the Asian financial crisis of 1997-98.
Indian policy makers have announced several measures to counter the impact of the lockdown on the economy and more are expected over the next few weeks. While the government has announced a ₹1.7 trillion relief package for those hit worst by the 21-day lockdown, aimed at checking the spread of novel coronavirus, the Reserve Bank of India has also taken a series of steps to boost liquidity in the banking system and encourage banks to lend.
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