In May, growth in 8 key infrastructure sectors amounted to 6.3%.

NEW DELHI: Growth of eight key infrastructure sectors increased by 6.3 per cent in May this year as compared to May 2023, led by robust growth in coal, natural gas and electricity production, according to official data released on Friday.

Eight major sectors, which include coal, petroleum, natural gas, refined products, fertilizers, steel, cement and electricity, account for 40.27 percent of the Indian Index of Industrial Production (IIP).

Increase

However, the growth rate was slightly down from April’s 6.7 percent. Official data released on Friday revealed that fertilizer, crude oil and cement production posted negative growth in May.

Production in these key sectors grew by 6.5 per cent in the first two months of the current fiscal year (April-May), surpassing the 4.9 per cent growth recorded in the same period of the previous fiscal year.

In May 2024, the production of coal, natural gas and electricity increased by 10.2%, 7.5%, respectively. and 12.8 percent

Meanwhile, the growth rate of refined products and steel production slowed to 0.5 percent and 7.6 percent in the same month.

Aditi Nayar, chief economist at Icra Ltd., said that while growth in the core sector remained above 6 percent for the fourth consecutive month, there was a slight decline in May.

She further said that the heat wave that affected some parts of the country and the staggered general elections that may have affected the activities and implementation of some sectors.

Meanwhile, she said the heatwave has boosted energy demand, resulting in higher coal and electricity production in May 2024 compared to the previous month. She expects the IIP growth print to be between 4 and 5 per cent in May 2024.