The country’s infrastructure sector has achieved the fastest growth in the last one year in November 2017. On the other hand, sales growth of the country’s largest car companies has increased in double digits in December. In such a situation, the economy has started with a positive note in the New Year and there is a sign of increasing demand. The index of 8 core industries increased to 6.8% in November. In this, the cement and steel sector played a big role. Core sector has more than 40% weightage in Index of Industrial Production (IIP). This means that after the poor performance in October, there will be a good growth in industrial growth in November.
Economic Affairs Secretary Subhash Chandra Garg said, “The production of steel and cement industry has increased 16.6% and 17.3%, respectively. Now it has come to the level before the note ban, which is good news for real estate sector investment.” The ban was announced in November 2016, due to which the demand was suddenly reduced. Therefore, due to the good performance of core sector performance in November 2017, the base effect is also spurring. Its positive impact can be seen in the core sector for a few months to come. The core sector growth was 3.6% in November 2016, whereas in November 2017 it was 7.1%. This is the best performance of the core sector after October 2016.
Most experts are estimating strong economic recovery. They say that the demonetization and the implementation of GST affect have come to an end. Devendra Pant, Chief Economist, India Ratings said, “There has been a good increase in cement and steel production which is a good indication. Construction activity is expected to be good in the coming time. It will have an important role in the Affordable Housing Sector and Road Building.”