8 Key Infrastructure Sectors Up 6.3% in May

NEW DELHI: Growth of eight key infrastructure sectors increased by 6.3 per cent in May this year compared to May 2023, mainly due to solid expansion in coal, natural gas and electricity production– according to official data published on Friday.
These eight main sectorswhich include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity, contribute 40.27 percent to India’s Index of Industrial Production (IIP).
However, this speed of growth was slightly lower compared to April’s 6.7 percent. Official data released on Friday showed that the production of fertilizers, crude oil and cement recorded 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, coal, natural gas and electricity production increased by 10.2%, 7.5% and 12.8%, respectively.
Meanwhile, growth in 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 core sector growth remained above 6 per cent for the fourth consecutive month, it moderated slightly in May.
She added that the heatwave that affected some parts of the country and the phased parliamentary elections could have had an impact on activities and the implementation of tasks in some sectors.
Meanwhile, it said the heatwave has boosted energy demand, which has resulted in a larger increase in coal and electricity production in May 2024 compared to the previous month. It expects the IIP growth rate in May 2024 to be in the range of 4-5 percent.