Mining Sector
After recording negative growth in the past three consecutive years, country's mining sector is on its path of recovery. The turnaround is expected to have a positive spillover on the sharply shrinking manufacturing and capital goods segments. It is in fact, for the first time in over two years when mining sector output has logged positive growth for three consecutive months on a year-on-year basis between November 2013 and January 2014, prompting experts to term it a nascent recovery injecting the much needed growth momentum in the economy. Available media reports and emerging stats in the past three months indicated a consistent uptick in mining output on a month-on-month basis for the five months between September 2013 and January 2014 - the longest streak when mining output grew by 0.7% in January 2014 compared to January 2013, according to quick estimates of industrial output released recently and it was 2.3% higher than December 2013. Apart from this, rating agency Crisil has also noted that mining is recovering due to recent policy efforts to revive the sector. Mining ban in Karnataka was lifted in mid-2013 and resolution of mining issues is underway after which firms obtaining relevant clearances and resume production, mining output is likely to improve further and provide impetus to a recovery in growth, Crisil said in a recent statement. According to economists, a revival of India's mining sector is critical for lifting industrial growth and the economy - a view that was echoed by the finance ministry in its mid-year economic review tabled last month, following the interim budget for 2014-15.