Output in the crucial eight-industry core sector contracted for the seventh month in a row, but the unlocking of the economy reduced the rate of decline to a mere 0.8 per cent in September against 7.3 per cent in the previous month.
Coal, electricity, and steel, which constitute over half the core sector index, showed a rise in production in September.
Coal output grew for the second month in a row with the growth rate accelerating to 21.2 per cent against 3.6 per cent in August.
This is likely to have a positive impact on the index of industrial production (IIP), which declined for the sixth straight month at 8 per cent in August. The core sector has a 40 per cent weighting in the IIP.
Some experts say the IIP may show a moderate growth rate in September after declining for six straight months.
Source: Business Standard
