September Sees Sluggish Growth in Key Infrastructure Sectors

In September, the growth of eight key infrastructure sectors slowed to 2%, a dip from the 9.5% observed last year. Significant sectors like crude oil, natural gas, and electricity showed negative growth, although cement and refinery products rose. Core sectors see a growth of 4.2% for the fiscal.

The growth of eight crucial infrastructure sectors slowed to 2% in September, a significant drop from the 9.5% recorded in the same month last year, according to official data. This deceleration follows a 1.6% contraction in August for these sectors, reflecting broader economic challenges.

Among the critical sectors, crude oil, natural gas, and electricity recorded negative growth in September. Meanwhile, coal, fertiliser, and steel productions also showed a moderation in growth, contrasting starkly with double-digit expansions reported last year. Conversely, cement and refinery products exhibited promising growth at 7.1% and 5.8%, respectively, marking a positive shift.

According to ICRA Ltd Chief Economist Aditi Nayar, improvements in sectors like mining and electricity contributed to the turnaround observed this September compared to August. She highlighted an uptick in GST e-way bills and pre-festive inventory build-up, projecting an IIP growth of 3-5% come September 2024.

(With inputs from agencies.)