Eight Core Sector Growth Slows Down To 4.3 Per Cent In March From 6 Per Cent In February

The eight core industries comprise 40.27 per cent of the weight of items included in the IIP

The coal and crude oil production contracted by 0.1 per cent and 3.4 per cent, respectively, in March. Image: Getty

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New Delhi: Growth in eight infrastructure sectors slumped to 4.3 per cent in March because of decline in the output of coal and crude oil, reported by the PTI.

According to official data released on Friday, the core sector clocked a 10.4 per cent expansion for full FY21-22. The report mentioned the eight core infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity -- had expanded by 6 per cent in February.

Data released by the industry department showed that except coal (-0.1 per cent) and crude oil (-3.4 per cent), other six infra sectors registered robust annual growth in March with fertiliser production (15.3 per cent) growing in double digits.

The sectors grew by 10.4 per cent compared to a contraction of 6.4 per cent in FY20-21 during April-March 2021-22.

The eight core industries comprise 40.27 per cent of the weight of items included in the IIP.

The coal and crude oil production contracted by 0.1 per cent and 3.4 per cent, respectively, in March.

The data revealed that the growth in production of natural gas, steel, cement, and electricity slowed down to 7.6 per cent, 3.7 per cent, 8.8 per cent, and 4.9 per cent, respectively, during the month under review as against 12.3 per cent, 31.5 per cent, 40.6 per cent, and 22.5 per cent in March 2021 respectively.

Output of refinery products and fertilizers grew by 6.2 per cent and 15.3 per cent, respectively, in March.

Aditi Nayar, chief economist, ICRA, said that the pace of growth of the core sector slumped to a “sedate” 4.3 per cent in March, with a slowdown in five of the eight constituents.

The double-digit growth recorded by fertiliser output in March came on the back of a very low base, she said, adding despite the pickup in mobility, growth in output of refinery products were in moderate category in March.