Core sectors of the country of India grew by 5 per cent overall in September driven mainly by strong growth in the steel and petroleum products sectors, data released by the government on Monday showed. The growth in the Index of Eight Core Industries in September was much stronger than the 3.2 per cent growth seen in August.

The steel sector grew by 16.3 per cent in September, down from the 17 per cent seen in August, which was the highest growth rate the sector saw in more than three years. The refinery products sector also contributed strongly to the overall growth of the index, growing at a robust 9.3 per cent in September compared with 3.5 per cent in August.

"The steel and cement sectors are the two major ones linked with infrastructure," Madan Sabnavis, chief economist at Care Ratings told The Hindu. So, the growth seen in these two sectors can be linked to the government push in roads and railways. With steel in particular, earlier there was dumping by China that was affecting the sector. But the minimum import price (MIP) has helped and so steel has been able to have double digits growth."

The cement sector grew by 5.5 per cent in September, faster than the 3.1 per cent seen in August. Similarly, the electricity sector grew by 2.2 per cent in September compared with 0.1 per cent in August.

The fertiliser sector grew only 2 per cent in September, drastically slower than the 5.7 per cent seen in August.

The overall energy component of the Index of Eight Core Industries-represented by the coal, crude oil, and natural gas sectors-contracted in September. The coal sector contracted 6 per cent in September compared with a contraction of 9.2 per cent in August.

"Coal production contracted, partially reflecting the oversupply in the markets and is likely to remain lacklustre in the coming months," Rishi Shah, Economist at Deloitte India said.

Similarly, the crude oil sector contracted 4.1 per cent in September compared with a contraction of 3.9 per cent in August. The natural gas sector contracted 5.5 per cent in September compared with a contraction of 5.7 per cent in August.