India’s Infrastructure Output Growth At Seven-Month High Of 6.7 Per Cent

Riding on increased production of coal and cement, India’s infrastructure sector grew at a seven-month high of 6.7 per cent in June.

In the April-June 2018-19 period, infra sector growth increased by 5.2 per cent over the corresponding period of the previous year.

This development comes after the growth in infrastructure sector slowed down to a 10-month low of 3.6 per cent in May 2018.

“A healthy pickup in the pace of growth of refinery products and steel, as well as a favourable base effect, contributed to the sequential improvement in core sector expansion to a seven month high 6.7 per cent in June 2018,” Aditi Nayar, principal economist at ICRA Limited, was quoted as saying.

Infrastructure output, which has eight sectors - steel, cement, fertilizer, natural gas, coal, crude oil and electricity - accounts for 40 per cent of the industrial output. Production of coal production increased by 11.5 per cent, cement by 13.2 per cent, electricity by 4 per cent and steel by 4.4 per cent. However, growth in crude oil slipped to 3.4 per cent and natural gas to 2.7 per cent.

Index of Industrial Production growth could be above 5 per cent in June.