Infrastructure Sector Growth Hits Five-Month Low

The growth of eight key infrastructure sectors slowed to 2.9% in February, a five-month low, largely due to the base effect of a leap year. A year ago, growth was at 7.1%. Coal, crude oil, and natural gas showed negative growth, though fertilizer and cement output rose by over 10%.

The growth rate of eight crucial infrastructure sectors in India fell to a five-month low of 2.9% in February, according to official data released this Friday. This marks a significant decline from the 7.1% growth observed in the same month last year.

On a month-to-month basis, the production growth of these critical sectors was noticeably lower than January's 5.1% expansion. The last time a similar low was recorded was in September 2024, with 2.4% growth.

Notably, crude oil and natural gas production recorded negative growth in February. While the growth rates for coal, refinery products, steel, and electricity also moderated significantly, fertilizer and cement production saw substantial increases of over 10% each. Together, these sectors contribute over 40% to the Index of Industrial Production.

(With inputs from agencies.)