Growth Of Key Infrastructure Sectors Hits 15-Month Low Of 3.6 Per Cent In January

The downturn is attributed to underperforming sectors such as refinery products, fertiliser, steel, and electricity, as per official data released on Thursday

Coal production increased by 10.2 per cent in January, 2024 over January, 2023.

Source : Getty

The growth of eight crucial infrastructure sectors in India has decelerated to a 15-month low, registering a mere 3.6 percent increase in January. This downturn is attributed to underperforming sectors such as refinery products, fertiliser, steel, and electricity, as per official data released on Thursday.

In comparison, the growth rate of these core sectors stood at 4.9 percent in December, marking a significant decline. January 2023 witnessed a notably higher growth rate at 9.7 percent, indicating a substantial decrease in growth over the past year.

This recent dip marks the lowest growth rate since October 2022 when it reached a mere 0.9 percent. Cumulatively, the growth rate for April-January 2022-23 period slowed to 7.7 percent, down from 8.3 percent in the previous year.

Among the sectors, refinery products and fertiliser experienced negative growth, while coal, steel, and electricity production saw a deceleration in growth. However, crude oil, natural gas, and cement production managed to record positive growth rates in January.

These eight core sectors collectively contribute 40.27 per cent to the country's Index of Industrial Production (IIP), highlighting their significant impact on the nation's industrial output.

The summary of the index of eight core industries:

Cement: Cement production (weight: 5.37 per cent) increased by 5.6 per cent in January, 2024 over January, 2023. Its cumulative index increased by 9.0 per cent during April to January, 2023-24 over corresponding period of the previous year.

Coal: Coal production (weight: 10.33 per cent) increased by 10.2 per cent in January, 2024 over January, 2023. Its cumulative index increased by 12.2 per cent during April to January, 2023-24 over corresponding period of the previous year.

Crude Oil: Crude Oil production (weight: 8.98 per cent) increased by 0.7 per cent in January, 2024 over January, 2023. Its cumulative index declined by 0.2 per cent during April to January, 2023-24 over corresponding period of the previous year.

Electricity: Electricity generation (weight: 19.85 per cent) increased by 5.2 per cent in January, 2024 over January, 2023. Its cumulative index increased by 6.8 per cent during April to January, 2023-24 over corresponding period of the previous year.

Fertilisers: Fertiliser production (weight: 2.63 per cent) declined by 0.6 per cent in January, 2024 over January, 2023. Its cumulative index increased by 5.5 per cent during April to January, 2023-24 over corresponding period of the previous year.

Natural Gas: Natural Gas production (weight: 6.88 per cent) increased by 5.5 per cent in January, 2024 over January, 2023. Its cumulative index increased by 5.6 per cent during April to January, 2023-24 over corresponding period of the previous year.

Petroleum Refinery Products: Petroleum Refinery production (weight: 28.04 per cent) declined by 4.3 per cent in January, 2024 over January, 2023. Its cumulative index increased by 3.9 per cent during April to January, 2023-24 over corresponding period of the previous year.

Steel: Steel production (weight: 17.92 per cent) increased by 7.0 per cent in January, 2024 over January, 2023. Its cumulative index increased by 13.1 per cent during April to January, 2023-24 over corresponding period of the previous year.