Core Growth Slows

The growth of India’s infrastructure industries slowed to a 16-month low of 3.5% in November, brought down by cement, electricity and coal production.

The last time the growth was slower was in July 2017, when the output expanded 2.9%.

The core sector had grown 4.8% in October 2018 and 6.9% in November 2017.

The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, constitute 40.27% of total industrial production. The latest data suggest a moderation in industrial growth going ahead. Cumulative growth in the April to November period was 5.1%, compared with 3.9% a year earlier.

Coal output growth dropped sharply to 3.7% in November from 11.3% in October, despite having a favourable base effect. Electricity generation rose 5.4%, compared with 10.9% in October.

The waning of favourable base effect halted the sustained trend of double-digit expansion recorded in cement output in the previous 12 months to 8.8% in November, compared with 18.4% a month earlier.

Crude oil and fertiliser production declined 3.5% and 8.1%, respectively, though the pace has slowed.

No comments: