The growth of India’s eight core infrastructure sectors slowed to 4.3 per cent in November 2024, compared to 7.9 per cent in the same month last year, according to official data released on Tuesday.
Despite the slowdown seen in comparison to last November, monthly production growth reached a four-month high. In October 2024, the sectors had expanded by 3.7 per cent.
In November, the output of crude oil and natural gas contracted, while other sectors showed moderated growth.
Coal production rose by 7.5 per cent, refinery products by 2.9 per cent, fertiliser by 2 per cent, steel by 4.8 per cent, and electricity by 3.8 per cent. These figures marked a decline from the higher growth rates recorded in November 2023.
Cement production, however, saw a significant increase, surging by 13 per cent during the month.
For the April-November period of the current fiscal year, core sector growth was 4.2 per cent, a sharp decline from 8.7 per cent in the same period last year.
The eight core sectors: coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity, collectively contribute 40.27 per cent to the Index of Industrial Production (IIP), a key measure of overall industrial performance.
Aditi Nayar, chief economist at ICRA Ltd, attributed the sequential improvement in November to a sharp rise in cement production, boosted by a low base effect.
“Looking ahead, we expect the IIP to grow by 5-7 per cent in November 2024, parlty benefitting from the uptick in the core sector growth,” she told news agency PTI.
