The output of eight key infrastructure sectors slowed to 4.3 per cent in November 2024, compared to a 7.9 per cent growth recorded in the same month last year, according to official data released on Tuesday.
On a monthly basis, the production growth of these sectors increased to a four-month high in November 2024. The output of infrastructure sectors expanded by 3.7 per cent in October 2024.
In November 2024 , production of crude oil and natural gas contracted. The production growth of coal, refinery products, fertilisers, steel, and electricity moderated to 7.5 per cent, 2.9 per cent, 2 per cent, 4.8 per cent, and 3.8 per cent, respectively, compared to 10.9 per cent, 12.4 per cent, 3.3 per cent, 9.7 per cent, and 5.8 per cent in November 2023.
However, cement output rose by 13 per cent in the month under review.
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The growth of core sectors – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity – was 4.2 per cent during April-November of the current fiscal year, down from 8.7 per cent in the same period last fiscal year.
The eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP), which measures overall industrial growth.
Commenting on the data, Aditi Nayar, Chief Economist at ICRA Ltd, said the sequential uptick in the core sector's performance was particularly driven by a sharp increase in cement output, aided by a low base.
"Looking ahead, we expect the IIP to grow by 5-7 per cent in November 2024, partly benefiting from the uptick in core sector growth," she added.
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