Core sector growth moderates to 6.3% in May

New Delhi, June 29 (KNN) The Government of India has reported a slight slowdown in the growth of eight key infrastructure industries, known as the primary sector, in May 2024.

The sector grew 6.3%, up from 6.7% in April, but still outpaced the 5.2% growth seen in May 2023.

The data showed mixed results across segments. Coal production and electricity generation showed significant increases of 10.2% and 12.8% respectively.

However, six of the eight major industries experienced a slowdown or contraction.

Natural gas production growth slowed to 7.5%, while the refined products and steel sectors saw more modest increases of 0.5% and 7.6%, respectively.

The fertilizer and cement industries contracted by 1.7%. and 0.8 percent, continuing the downward trend. Oil production also declined, falling 1.1%. within a month.

Aditi Nayar, chief economist and director of research and outreach at ICRA, attributed the mixed results to several factors.

“The combination of a heatwave and staggered parliamentary elections may have limited activity and enforcement in some sectors,” she noted.

However, Nayar also noted that increased demand for electricity due to the heat wave contributed to the growth of the coal and power sectors.

This report provides an insight into the current status of India’s major infrastructure industries, which are key indicators of the country’s economic health and industrial activity.

(KNN Office)