Key Infra Sectors' Growth Slows To 6.7% In February
Growth of key infrastructure sectors slowed to 6.7% in February, with poor performance in fertiliser.
The growth of eight key infrastructure sectors slowed to 6.7% in February due to poor performance of some sectors like fertiliser, according to official data released on Thursday.
However, on a sequential basis, the growth rate is highest in the last three months.
The growth of eight core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 4.1% in January.
It was 7.4% in February 2023.
Cumulatively also, the growth rate in the output of these sectors slowed to 7.7% in April-January this fiscal against 8.2% in April-February 2022-23.
The output growth of fertiliser was in the negative zone.
The eight core sectors contribute 40.27% to the country's Index of Industrial Production.
According to the data, the growth rate in the output of refinery products, steel, and electricity declined in February.
However, coal (11.6%), crude oil (7.9%), natural gas (11.3%), and cement (10.2%) production registered healthy growth during the month under review.
Aditi Nayar, Chief Economist, Head - Research & Outreach, Icra Ltd, said the core sector growth improved to a three-month high in February.
Three of the eight industries - coal, cement and natural gas - displayed a double-digit expansion.
"Given the healthy improvement in the core sector growth, we expect the IIP to record an expansion of 6.0-6.5% in February 2024," she said.