Key facts
- India's infrastructure output grew 5% year-on-year in June.
- This is the slowest pace of growth in nearly two years.
- Five of the eight core infrastructure sectors contracted.
- Steel and cement production saw positive growth.
- Refinery products and crude oil output declined.
India's infrastructure output saw a 5% year-on-year increase in June, representing the slowest growth rate in nearly two years, according to government data. This moderation is attributed to factors such as the monsoon season impacting electricity demand and a contraction in five of the eight core infrastructure sectors.
While overall growth slowed, specific sectors showed mixed performance. Steel and cement production experienced robust positive growth of 9.3% and 9.2% respectively. However, refinery products saw a decline of 1.5%, and crude oil production fell by 2.6%. Electricity generation, a key component, grew at a slower pace of 7.7% compared to 13.7% in May.
This revised data series, with 2022-23 as the base year, now includes iron ore, expanding the basket of monitored industries to nine. Previously, infrastructure output had grown by a revised 3.2% in May. The slowdown in infrastructure output suggests that India's industrial production index (IIP) for June may grow between 3.5% and 5%.