Key infra sector growth slows to 6-month low of 7.8% in November

The production growth of eight key infrastructure sectors slowed to a six-month low of 7.8 per cent in November due to a decline in the output of crude oil and cement sectors. The growth rate in the production of coal, fertiliser, steel, and electricity also decreased during November this year.

According to the data released by the government, the growth during the month under review, however, is higher than the 5.7 per cent recorded a year ago.

The core sector's (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity) growth in October was 12 per cent.

The last low was registered in May when these sectors recorded a growth of 5.2 per cent.

All sectors, except crude oil and cement, recorded healthy production growth in the month under review.

Coal and refinery product output registered a double-digit growth.

The output growth of eight sectors was 8.6 per cent in April-November 2023-24 against 8.1 per cent in the year-ago period.

These numbers assume significance as the eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP).

Natural gas output rose by 7.6 per cent while refinery products output jumped 12.4 per cent during the month under review against (-) 0.7 per cent and (-) 9.3 per cent in November 2022, respectively.

"Cement production decreased by 3.6 per cent in November 2023 over November 2022. Crude Oil production decreased by 0.4 per cent in November 2023 over November 2022," the commerce and industry ministry said.