The country's core sector has shown signs of recovery, reporting 6.5 per cent growth in June, led by government's initiative to mitigate the impact of global slowdown.

The core sector comprising six core industries- coal, cement, crude oil, electricity, finished steel and petroleum refinery products - grew just 2.8 per cent in May, forcing government to take more measures to stimulate demand in the market.

Hoping early recovery of the market, Union Commerce and Industry Minister, Anand Sharma, said: "We want to ensure that this recovery continues and India returns firmly on the high growth trajectory."

The country's coal output reported impressive growth rate of 14.7 per cent; while cement production grew by 12.8 percent in June, 2009. Power generation and crude oil sector reported an increase of 7 per cent and 4 per cent respectively. However, petroleum refinery output did not perform well and declined by 3.7 per cent.

Promising full support to the industry, Mr. Sharma added: "It is looking good. It is a sign of sluggish recovery. The stimulus packages and steps announced in the budget are having a positive impact on industry."