Core Sector Growth Moderates To 6.3% In May
Date
6/29/2024 2:14:55 PM
(MENAFN- KNN India)
New Delhi, Jun 29 (KNN)
The Indian government reported a slight deceleration in the growth of eight key infrastructure industries, known as the core sector, for May 2024.
The sector expanded by 6.3 per cent, down from 6.7 per cent in April, but still outpacing the 5.2 per cent growth recorded in May 2023.
The data revealed a mixed performance across various segments. coal production and electricity generation showed robust growth, increasing by 10.2 per cent and 12.8 per cent respectively.
However, six out of the eight core industries experienced a slowdown or contraction.
Natural gas output growth decelerated to 7.5 per cent, while refinery products and steel sectors saw more modest expansions of 0.5 per cent and 7.6 per cent respectively.
The fertiliser and cement industries contracted by 1.7 per cent and 0.8 per cent, continuing their downward trend. Crude oil production also declined, falling by 1.1 per cent during the month.
Aditi Nayar, Chief Economist and Head of Research and Outreach, ICRA, attributed the mixed performance to several factors.
"A combination of heatwave conditions and the phased parliamentary elections could have curtailed activity and execution in some sectors," she noted.
However, Nayar also pointed out that the increased demand for power due to the heatwave contributed to the growth in coal and electricity sectors.
This report provides insights into the current state of India's core infrastructure industries, which are crucial indicators of the country's economic health and industrial activity.
(KNN Bureau)
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