India's cement and manufacturing sectors, hit firmly by economic slowdown last year, are now picking up. This would impact other sectors positively.

Ajay Shankar, secretary at the Department of Industrial Policy and Promotion, confirmed this to the reporters on the sidelines of a seminar in New Delhi. Shankar said that these sectors are expected to improve further.

India's industrial output grew 1.4% in April as against a decline of 0.75% in March, which according to analysts, can be seen as early signs of recovery.

Reacting to a World Bank report, which said red tapism was still unchecked in India, Shankar said the department was working with the states to reduce bureaucratic hurdles and create a favourable environment for industries and businesses.

Earlier, International Finance Corp, the industrial financing arm of the World Bank, had called for corrective measures to bring down red tapism in India.