Key Infra Sector Growth In India Slows Down To 4.3 Per Cent In May

The growth slowed down to 4.3 per cent in May 2023 mainly because of a decline in the production of crude oil, natural gas, and electricity

The growth of eight key infrastructure sectors i.e. the Index of Eight Core Industries (ICI) slowed down to 4.3 per cent in May 2023 mainly because of a decline in the production of crude oil, natural gas, and electricity. The core sector growth was 19.3 per cent in May 2022 while in April 2023 the key infra sectors recorded a growth rate of 4.3 per cent. During April-May this fiscal year, the output growth of these eight sectors slowed down to 4.3 per cent as against 14.3 per cent in the year-ago period. 

According to the release by the government, ICI measures combined and individual performance of production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. The eight core sectors comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). 

Here' the summary of the index of eight core industries:

Coal: Coal production (weight: 10.33 per cent) increased by 7.2 per cent in May, 2023 over May, 2022. Its cumulative index increased by 8.2 per cent during April to May 2023-24 over corresponding period of the previous year.

Crude Oil: Crude Oil production (weight: 8.98 per cent) declined by 1.9 per cent in May, 2023 over May, 2022. Its cumulative index declined by 2.7 per cent during April to May, 2023-24 over the corresponding period of previous year.

Natural Gas: Natural Gas production (weight: 6.88 per cent) declined by 0.3 per cent in May, 2023 over May, 2022. Its cumulative index declined by 1.5 per cent during April to May, 2023-24 over the corresponding period of previous year.

Petroleum Refinery Products: Petroleum Refinery production (weight: 28.04 per cent) increased by 2.8 per cent in May, 2023 over May, 2022. Its cumulative index increased by 0.7 per cent during April to May, 2023-24 over the corresponding period of previous year.

Fertilizers: Fertilizers production (weight: 2.63 per cent) increased by 9.7 per cent in May, 2023 over May, 2022. Its cumulative index increased by 15.7 per cent during April to May, 2023-24 over the corresponding period of previous year.

Steel: Steel production (weight: 17.92 per cent) increased by 9.2 per cent in May, 2023 over May, 2022. Its cumulative index increased by 12.2 per cent during April to May, 2023-24 over the corresponding period of previous year.

Cement: Cement production (weight: 5.37 per cent) increased by 15.5 per cent in May, 2023 over May, 2022. Its cumulative index increased by 13.7 per cent during April to May, 2023-24 over the corresponding period of previous year.

Electricity: Electricity generation (weight: 19.85 per cent) declined by 0.3 per cent in May, 2023 over May, 2022. Its cumulative index declined by 0.7 per cent during April to May, 2023-24 over the corresponding period of previous year.