Key infra sector growth slows to six-month low of 3.5% in April

Fertiliser production soared by 23.5 per cent, steel by 12.1 per cent and cement output by 11.6 per cent in April, the data showed

Output of eight core infrastructure industries increased by 3.5 per cent in April, the slowest pace in six months, dragged by decline in the production of electricity, crude oil, natural gas and refinery products.

According to data released by the Ministry of Commerce and Industry, electricity production contracted by 1.4 per cent on a year on year basis in April. This is the second month of decline in electricity production amid unseasonal rainfall.

Crude oil production in April 2023 was 3.5 per cent lower when compared with the output in the same month last year. This is the 11th consecutive month of contraction in crude oil output.

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Eight core industries that include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity, had posted a growth of 9.5 per cent in April 2022. The April 2023 expansion is the slowest since October 2022 when the growth stood at 0.7 per cent.

These eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

The production of fertilizers, steel, cement and coal increased in April 2023 over the corresponding month of last year.

Fertilizers output surged by 23.5 per cent in April 2023 when compared with the same month last year.

Steel output increased by 12.1 per cent and cement production jumped by 11.6 per cent during the month under review on a year-on-year basis.