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June sees key infra sector growth soar to 8.2%
ECONOMY & POLICY

June sees key infra sector growth soar to 8.2%

Output of eight key infrastructure sectors expanded at a five-month rate of 8.2% in June on healthy performance by sectors such as natural gas and steel, according to the official data released on Monday. However, production growth was slower than 13.1% recorded in June 2022.

Core sector growth in June is the highest since January 2023 when the key sectors expanded at 9.7%. In May 2023, the growth rate was 5%. The output growth of the eight sectors slowed down to 5.8% in April-June 2023-24 against 13.9% in the year-ago period.

In June, steel output jumped by 21.9% as against 3.3% in the same month last year. Natural gas production increased by 3.6% during the month under review as compared to 1.2% in June 2022. Coal output growth slowed down to 9.8% in June 2023 as against 32.1% in June 2022.

The growth rate in the production of refinery products, fertiliser, cement and electricity slowed down to 4.6%, 3.4%, 9.4% and 3.3% as against 15.1%, 8.2%, 19.7%, and 16.5% respectively. Crude oil production dipped by 0.6%.

Commenting on the numbers, ICRA Ltd Chief Economist Aditi Nayar said that the tardy onset of the monsoon contributed to the improved performance of electricity and coal.

Output of eight key infrastructure sectors expanded at a five-month rate of 8.2% in June on healthy performance by sectors such as natural gas and steel, according to the official data released on Monday. However, production growth was slower than 13.1% recorded in June 2022.Core sector growth in June is the highest since January 2023 when the key sectors expanded at 9.7%. In May 2023, the growth rate was 5%. The output growth of the eight sectors slowed down to 5.8% in April-June 2023-24 against 13.9% in the year-ago period.In June, steel output jumped by 21.9% as against 3.3% in the same month last year. Natural gas production increased by 3.6% during the month under review as compared to 1.2% in June 2022. Coal output growth slowed down to 9.8% in June 2023 as against 32.1% in June 2022.The growth rate in the production of refinery products, fertiliser, cement and electricity slowed down to 4.6%, 3.4%, 9.4% and 3.3% as against 15.1%, 8.2%, 19.7%, and 16.5% respectively. Crude oil production dipped by 0.6%.Commenting on the numbers, ICRA Ltd Chief Economist Aditi Nayar said that the tardy onset of the monsoon contributed to the improved performance of electricity and coal.

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