Growth of Core Infrastructure Sectors Slows to 6.1% in July

The growth rate of eight key infrastructure sectors in India slowed to 6.1% in July, influenced by a decline in crude oil and natural gas output. This follows a 5.1% growth in June. Despite the deceleration, the sectors still contribute significantly to the Index of Industrial Production (IIP).

The growth of key infrastructure sectors in India slowed to 6.1% in July, primarily due to declining crude oil and natural gas output, as confirmed by official data released on Friday.

This performance marks an increase from the 5.1% growth rate observed in June. However, the growth rate for these core sectors—comprising coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity—was 8.5% in July 2023.

From April to July in the current fiscal year, the output of these sectors grew by 6.1%, compared to 6.6% in the same period last fiscal year. These eight core sectors account for 40.27% of the Index of Industrial Production (IIP), a metric used to gauge overall industrial growth. Notably, crude oil and natural gas output decreased by 2.9% and 1.3% respectively in July, while the growth rates for coal, steel, cement, and electricity decelerated. Conversely, the production of refinery products and fertiliser saw an increase.

(With inputs from agencies.)