Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
India’s eight core infrastructure sectors recorded a growth of 0.5% in May, marking the slowest expansion in seven months, according to government data released on 22 June. The moderation was driven by lower production across coal, crude oil, natural gas, refinery products and fertilisers. The growth rate was lower than the 1.8% recorded in April and 1.2% in the corresponding month last year. During the first two months of FY2026-27, cumulative growth in the core sectors remained at 1.1%. The latest data points to continued pressure on key industrial segments that form the backbone of the country’s infrastructure and manufacturing activity.
India’s eight core infrastructure sectors registered a growth of 0.5% in May, the slowest pace of expansion in seven months, as declines in the production of coal, crude oil and refinery products weighed on overall performance. The figures were released by the government on 22 June.
The latest growth rate represents a moderation from the 1.8% expansion recorded in April and the 1.2% growth reported in May last year. The slowdown reflects weaker output across several key industries that collectively account for a significant share of the country’s industrial production.
According to the official data, five of the eight core sectors posted negative growth during the month. These included coal, crude oil, natural gas, refinery products and fertilisers. The contraction in these segments offset gains recorded in other sectors and contributed to the overall moderation in growth.
The eight core industries comprise coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. Their performance is closely monitored as they serve as leading indicators of industrial activity and economic momentum, while also supplying essential inputs for infrastructure development, manufacturing and construction.
During the first two months of FY2026-27, covering April and May, cumulative growth in the core sectors stood at 1.1%. This indicates that overall expansion in the infrastructure-linked industries remained subdued during the opening months of the financial year.
The latest reading follows a period of fluctuating performance across the sector. In October last year, the eight core industries had recorded a contraction of 0.1%, highlighting the challenges faced by several key segments amid changing demand and production conditions.
Coal and crude oil, which are critical inputs for power generation and industrial activity, witnessed lower production during May. Refinery products also recorded a decline, adding to the pressure on overall output. Negative growth in natural gas and fertiliser production further contributed to the weaker performance.
The core sector data assumes significance for the broader economy because these industries have a substantial weight in the Index of Industrial Production (IIP). Changes in output levels across these sectors often influence overall industrial growth trends and provide an early indication of economic activity levels.
The May figures suggest that growth in India’s infrastructure-linked industries remained modest, with production declines in several key sectors limiting the pace of expansion despite positive contributions from the remaining industries.
Source - PTI
Advertisement
Facebook
Whatsapp
