Closing the fiscal year on a high, the index of eight core industries rose by 5 per cent in March, a three-month high, led by double-digit growth in steel and coal sectors.

The eight sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — are seen as a bellwether of factory output as they account for nearly 38 per cent of the weight of items included in the Index of Industrial Production.

The core industries grew by a mere 1 per cent in February this year, and 9.3 per cent in March 2016. The core sector’s “cumulative growth during April-March 2016-17 was 4.5 per cent,” said an official statement on Monday. This is a two-year high for the sector, which registered a cumulative growth of 4 per cent in 2015-16. The IIP dipped by 1.2 per cent in February 2016, and the core sector data indicates a possible reversal in March.

Among the eight industries, the fastest growth was in steel production, which rose by 11 per cent in March, followed by coal production, which grew 10 per cent.

However, the steepest decline was in cement production, which contracted by 6.8 per cent, followed by fertiliser production and refinery products, which dipped by 0.8 per cent and 0.3 per cent respectively.

Analysts, however, remained cautious on a recovery. “Only if the data show growth on a sustained basis for at least a few months can we say that industrial recovery is taking place,” said Devendra Pant, chief economist, India Ratings.

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