India’s production of eight infrastructure sectors expanded by 7.9 per cent in September against 5.4 per cent in the year-ago same month, supported by output in coal, fertiliser, cement and electricity segments, according to the latest official data.
In August, the core sectors’ output growth stood at 4.1 per cent, which was the lowest in nine months. The eight core sectors are coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity.
The output growth of eight infrastructure sectors stood at 9.6 per cent during April-September this fiscal, compared with 16.9 per cent a year ago.
The eight core industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). “Final growth rate of Index of eight core industries for June 2022 is revised to 13.1 per cent from its provisional level 12.7 per cent. The cumulative growth rate of ICI during April-September 2022-23 was 9.6 per cent (P) as compared to the corresponding period of last year,” according to an official statement.
Aditi Nayar, chief economist at ICRA, said, “After two months of moderation, core sector growth rebounded to a robust 7.9 per cent in September 2022, and exceeded our expectation of a 5.5-6.5 per cent rise. Disaggregated data for September 2022 is broadly positive, with double-digit expansion in cement, coal, fertiliser and electricity, moderate growth in refinery products and steel, and contraction in YoY terms being limited to two sectors, crude oil and natural gas.”
She added that with the core sector growth improving to 7.9 per cent in September 2022 and a surge in GST e-way bills prior to the festive season, we expect the IIP to revert to a modest 4-6 per cent YoY rise in that month, from the unexpected contraction in August 2022.
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