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Decline in Growth of Key Infrastructure Sectors

The growth of eight key infrastructure sectors in India slowed to a 15-month low of 3.6% in January, primarily due to lackluster performance in sectors such as refinery products, fertilizers, steel, and electricity. This decline was revealed in official data released on Thursday.

Comparison with Previous Months

In December, the growth rate of these eight core sectors was recorded at 4.9%, indicating a noticeable decrease. Moreover, in January 2023, the growth stood significantly higher at 9.7%, underscoring the current slowdown.

Cumulative Growth Rate

On a cumulative basis, the growth rate in the output of these sectors decelerated to 7.7% compared to 8.3% recorded during April-January 2022-23, further highlighting the overall slowdown in the infrastructure sectors.

Sectoral Performance

Refinery products and fertilizer sectors experienced negative growth rates, contributing to the overall slowdown. Additionally, the growth rates in coal, steel, and electricity production also decreased during the review month. However, there were positive growth trends observed in crude oil, natural gas, and cement production.

Contribution to Industrial Production

The eight core sectors collectively contribute a significant 40.27% to the country’s Index of Industrial Production (IIP), indicating their substantial impact on India’s industrial output and economic performance.

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