India's infra sector growth moderates to 5.3% in March
COAL & MINING

India's infra sector growth moderates to 5.3% in March

The growth trajectory of India's infrastructure sector saw a moderation in March, with the output expanding at a rate of 5.3%. This deceleration, as reported by the Department for Promotion of Industry and Internal Trade (DPIIT), indicates a slowdown from the previous month's robust performance.

Key sectors contributing to this growth moderation include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. While these sectors continue to show positive growth, the pace has slackened compared to earlier months.

Among the sectors, coal output witnessed a significant slowdown, growing at just 0.9% in March compared to a robust 10.3% in the corresponding month last year. Similarly, the growth rate of crude oil production dropped to 2.6% from 9.3% in March 2023. Natural gas production also experienced a decline, expanding at a rate of 8.4% compared to 15.3% a year ago.

The moderation in growth can be attributed to various factors, including supply chain disruptions, rising input costs, and global economic uncertainties. Additionally, the resurgence of COVID-19 cases in certain parts of the country and geopolitical tensions have added to the challenges faced by the infrastructure sector.

Despite the moderation in growth, certain sectors have shown resilience. Refinery products, for instance, maintained a steady growth rate of 8.9% in March, albeit lower than the 14.1% growth recorded in the same period last year. Similarly, steel production continued its upward trajectory, albeit at a slower pace, growing by 8.4% compared to 15.6% in March 2023.

On a positive note, the electricity sector exhibited robust growth, expanding by 7.4% in March, driven by increasing demand and improved availability of fuel. However, the growth rate was lower than the 10.2% recorded in the corresponding month last year.

The moderation in infrastructure sector growth underscores the need for sustained policy support, investment, and structural reforms to stimulate economic activity and boost productivity. Addressing supply chain constraints, enhancing infrastructure investment, and promoting technological innovation are crucial for revitalizing the sector and driving sustainable growth in the long run.

The growth trajectory of India's infrastructure sector saw a moderation in March, with the output expanding at a rate of 5.3%. This deceleration, as reported by the Department for Promotion of Industry and Internal Trade (DPIIT), indicates a slowdown from the previous month's robust performance. Key sectors contributing to this growth moderation include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. While these sectors continue to show positive growth, the pace has slackened compared to earlier months. Among the sectors, coal output witnessed a significant slowdown, growing at just 0.9% in March compared to a robust 10.3% in the corresponding month last year. Similarly, the growth rate of crude oil production dropped to 2.6% from 9.3% in March 2023. Natural gas production also experienced a decline, expanding at a rate of 8.4% compared to 15.3% a year ago. The moderation in growth can be attributed to various factors, including supply chain disruptions, rising input costs, and global economic uncertainties. Additionally, the resurgence of COVID-19 cases in certain parts of the country and geopolitical tensions have added to the challenges faced by the infrastructure sector. Despite the moderation in growth, certain sectors have shown resilience. Refinery products, for instance, maintained a steady growth rate of 8.9% in March, albeit lower than the 14.1% growth recorded in the same period last year. Similarly, steel production continued its upward trajectory, albeit at a slower pace, growing by 8.4% compared to 15.6% in March 2023. On a positive note, the electricity sector exhibited robust growth, expanding by 7.4% in March, driven by increasing demand and improved availability of fuel. However, the growth rate was lower than the 10.2% recorded in the corresponding month last year. The moderation in infrastructure sector growth underscores the need for sustained policy support, investment, and structural reforms to stimulate economic activity and boost productivity. Addressing supply chain constraints, enhancing infrastructure investment, and promoting technological innovation are crucial for revitalizing the sector and driving sustainable growth in the long run.

Next Story
Building Material

JK Cement emerges successful bidder for Mahan coal mine in Madhya Pradesh

This marks the company’s second commercial coal block win, following its acquisition of the West of Shahdol (South) coal block. "The company is committed to becoming self-reliant for its existing cement plants and upcoming projects," JKC stated. The surplus coal from the mine will be sold commercially. The vesting order was handed over to JK Cement during a ceremony at Shastri Bhawan, New Delhi, a critical milestone for commencing mining operations within the stipulated timeline...

Next Story
Building Material

Prism Johnson's cement division goes live with Ramco ERP Suite

Prism Johnson has successfully gone live with the Ramco ERP Suite for its Cement Division. This milestone marks a significant step in Prism Johnson's digital transformation journey, leveraging Ramco Systems' advanced enterprise solutions and process control systems to streamline business processes, manufacturing operations and drive efficiency. The implementation includes cutting-edge modules for Maintenance, Sales, Distribution, Finance, Procurement, Manufacturing, Quality, and HR Management (HRM). These solutions enable Prism Johnson to achieve seamless integration across its business and wo..

Next Story
Infrastructure Urban

Indian shadow bank Shriram Finance gets record $1.28 billion loan

Shriram Finance Ltd. is reported to have borrowed $1.28 billion in a multi-currency social loan, marking the largest offshore facility ever undertaken by an Indian shadow lender. According to a press release issued by Shriram, the deal is divided across the dollar, euro, and dirham. Sources familiar with the transaction, who wished to remain anonymous, indicated that the tenors in the multi-tranche deal range from three to five years. This loan adds to the surge of offshore debt sales by Indian shadow lenders this year, a trend prompted by the Reserve Bank of India's tightening of rules in Nov..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000