India's core sector maintains double-digit growth

In June, India's eight infrastructure sectors expanded by double digits for the second month in a row, despite a slowdown in sequential growth. According to data provided by the industry department, the core sector gained 12.7% year on year in June, but fell 4.1% sequentially. According to Aditi Nayar, chief economist of Icra, core sector growth has moderated to 19.3 percent from 19.3 percent in May. 12.7 per cent in June, reflecting the normalising base. “The core sector reported 8 per cent growth in June 2022 from the pre-Covid level, with a healthy performance from all the sectors, except steel and crude oil. In line with the moderation in the YoY performance recorded by most high-frequency indicators, as well as the core sector in June 2022, we expect IIP growth to ease to around 11-13 per cent in that month,” she said.