March 1, 2024: The growth of the eight key infrastructure sectors decelerated to a 15-month low of 3.6% in January 2024, primarily due to lacklustre performance in sectors such as refinery products, fertiliser, steel, and electricity, as per official data released by the Commerce and Industry Ministry on February 29, 2024.
In December 2023, the growth rate of these eight core sectors was 4.9%, while it stood at 9.7% in January 2023. The previous lowest growth rate was recorded at 0.9% in October 2022. Cumulatively, the growth rate in the output of these sectors slowed down to 7.7% compared to 8.3% in April-January 2022-23.
The Index of Core Industries (ICI), which constitutes slightly over 40.27% of the Index of Industrial Production (IIP), witnessed a sequential rise in output for the second consecutive month, registering a 2.2% increase compared to December 2023. Output levels reached a ten-month high in absolute terms.
Refinery products and fertiliser output experienced negative growth, and the pace of increase in coal, steel, and electricity output slowed during the reviewed month. However, crude oil, natural gas, and cement production recorded positive growth in January.
Refinery products, accounting for 28% weightage in the ICI, declined by 4.3% in January, marking their first contraction in nine months. Conversely, electricity generation, with a 20% weightage, rebounded from a modest 1.2% increase in December to a 5.2% rise in January. Coal output growth slightly decelerated to 10.2%, but still maintained the seventh consecutive month of double-digit growth. Crude oil production broke a two-month streak of contractions, registering a minor 0.7% growth in January.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
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