Growth of Key Infrastructure Sectors Slows to 4.3% in November
The growth rate of eight key infrastructure sectors slowed to 4.3% in November 2024, compared to 7.9% in the same month last year, according to official data released. On a monthly basis, however, production growth in these sectors reached a four-month high. In October 2024, output in the sectors expanded by 3.7%. November saw a contraction in the production of crude oil and natural gas. The growth in coal, refinery products, fertiliser, steel, and electricity also moderated to 7.5%, 2.9%, 2%, 4.8%, and 3.8%, respectively, compared to last year’s growth rates of 10.9%, 12.4%, 3.3%, 9.7%, and 5.8%. On a positive note, cement production increased by 13% in November. For the period between April and November of the current fiscal year, the growth in core sectors stood at 4.2%, down from 8.7% during the same period last year. These eight core sectors contribute 40.27% to the Index of Industrial Production (IIP), which gauges overall industrial performance. Aditi Nayar, Chief Economist at ICRA Ltd, noted that the sequential increase in core sector performance was largely driven by a sharp rise in cement output, influenced by a low base. She also expects the IIP to grow by 5-7% in November 2024, partly due to the uptick in core sector growth. (ET)
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