Recent updates -
March Output Growth: The output growth of India's eight core infrastructure sectors moderated to 5.2% in March from 7.1% in February. High growth was observed in cement and electricity production, but this was offset by contractions in fertilisers and refinery products.
Annual Growth in 2023-24: For the full year 2023-24, the core sectors recorded a growth of 7.5%, which is a three-year low compared to 7.8% in the previous fiscal year 2022-23. However, it marked the first time in at least 12 years that all eight sectors recorded annual growth.
Sector-wise Performance: Steel and coal witnessed double-digit upticks, while crude oil output rose after 11 years of contraction. However, fertilisers and refinery products contracted. Notably, all sectors recorded higher production levels compared with February.
Index of Core Industries (ICI): The ICI, which constitutes a little over 40% of the Index of Industrial Production (IIP), reached 173.3 in March, the highest print in at least seven and a half years. It was 9.9% higher than February levels.
Year-on-Year Growth: Six of the eight sectors recorded year-on-year growth.
Fertilisers contracted for the third successive month, while refinery products shrank. Steel output grew at the slowest pace since July 2022, while natural gas and crude oil production rose.
Sector-wise Growth: Cement production and electricity generation rose at a five-month high pace, while coal output grew at the slowest pace since last June. However, coal production levels were significantly higher than February.
Annual Sector-wise Growth: In 2023-24, steel output witnessed the highest growth at 12.3%, followed by coal and cement production. Electricity generation recorded the slowest growth in three years, while natural gas output also increased.
Fertilisers and Refinery Products: Fertilisers and refinery products recorded modest growth rates of 3.7% and 3.4%, respectively, indicating subdued performance compared to other core sectors.
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