<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p><p align="justify"><span class='dropthecap'>C</span>ore sector growth numbers for september 2009 show a 3.8 per cent fall as compared to a growth of 7.8 per cent in August 2009. <br /><br />The slowdown in growth in the six core sectors — crude oil, petroleum products, coal, electricity, cement and finished steel — is also going to reflect in the index of industrial production (IIP) growth numbers, which have shown a rebound and even touched 10.4 per cent in August 2009 (core sector has a weight of 26.68 per cent in IIP). According to D.K. Joshi, principal economist with rating agency Crisil, the IIP for September will not be in double digits. <br /><br />However, the bleak numbers of core sector growth should not trigger a panic of a slowdown. First, slowdown in core sector during September, is partly on account of a dip in the growth of coal production. But this is also the month where hydel power generation picks up and coal-based stations are either shut or reduce generation, therefore, requiring less coal. <br /><br />Second, IIP numbers form an important input in projecting the GDP (gross domestic product) growth for the entire fiscal. If there were signs of a slowdown in GDP, then these would have been reflected in even the Prime Minister's Economic Advisory Council's (EAC) projections made a few days ago. EAC put the growth of Indian economy at 6.5 per cent during this financial year. <br /><br />"The long-term view is that it has grown 5 per cent during the first half of this fiscal, which we expect will be strengthened in the coming months," says Joshi.</p> <script type="text/javascript"> var intro = jQuery.trim(jQuery('#commenth4').text()) var page = jQuery.trim(jQuery('#storyPage').text()) if (page.indexOf(intro) < 0) { jQuery('#commenth4').attr('style', 'display:block;') } </script> (This story was published in Businessworld Issue Dated 09-11-2009)