Primary sector growth 6.3 percent in May; The production of electricity, coal and steel is growing

Eight key infrastructure sectors grew 6.3 percent in May on the back of healthy expansion in coal, natural gas and electricity production, although the growth rate is lower than in April, according to official data released on Friday. Output in eight sectors increased by 6.7 percent in April. The growth of these major sectors, coal, crude oil, natural gas, refined products, fertilizers, steel, cement and electricity, was 5.2 percent in May 2023. Official data showed that the production of fertilizers, crude oil and cement recorded negative growth in May.

In April-May of the current fiscal year, the production of these sectors increased by 6.5%. compared to 4.9 percent during the same period of the previous fiscal year. The growth of coal, natural gas and electricity production increased by 10.2%, 7.5%, respectively. and 12.8 percent compared to 7.2 percent, (-) 0.3 percent and 0.8 percent in May 2023

The growth rate of refinery products and steel production slowed to 0.5%. and 7.6 percent during the month covered by the study. Eight major sectors contribute 40.27 percent. to the national Index of Industrial Production (IIP).

ICRA chief economist Aditi Nayar said that while core sector growth remained above 6 percent for the fourth consecutive month, it weakened slightly in May. A combination of factors, including a heatwave in some parts of the country and a phased general election, may have limited activity and implementation in some sectors, it added.

Index summary of eight major industries:

Cement: Cement production (weight: 5.37%) decreased by 0.8 percent in May 2024 compared to May 2023. Its cumulative rate decreased by 0.6 percent in April-May 2024-2025 compared to the same period of the previous year.

Coal: Coal production (weight: 10.33 percent) increased by 10.2 percent in May 2024 as compared to May 2023. Its cumulative rate increased by 8.9 percent during April-May 2024-2025 as compared to the same period of the previous year.

Petroleum: Oil production (weight: 8.98%) decreased by 1.1% in May 2024 compared to May 2023. Its cumulative rate increased by 0.2% in the period April to May 2024-2025 in compared to the same period of the previous year.

Electricity: Electricity production (weight: 19.85 percent) increased by 12.8 percent in May 2024 compared to May 2023. Its cumulative indicator increased by 11.6 percent in the period from April to May 2024–2025 compared to the same period of the previous year.

Fertilizers: Fertilizer production (weight: 2.63%) decreased by 1.7% in May 2024 compared to May 2023. Its cumulative rate decreased by 1.2% in the period April to May 2024-2025 compared with the same period of the previous year.

Natural gas: Natural gas production (weight: 6.88%) increased by 7.5% in May 2024 compared to May 2023. Its cumulative rate increased by 8.0% in the period from April to May 2024-2025 in compared to the same period of the previous year.

Oil refinery products: Oil refinery production (weight: 28.04%) increased by 0.5% in May 2024 compared to May 2023. Its cumulative index increased by 2.2% in the period from April to May 2024–25 compared to the same period of the previous year.

Steel: Steel production (weight: 17.92 percent) increased by 7.6 percent in May 2024 compared to May 2023. Its cumulative rate increased by 8.2 percent in April-May 2024-2025 compared to the same period of the previous year.