Core Infrastructure Sector Growth Hits Three-Month Low

Production growth in eight core infrastructure sectors slowed to a three-month low of 2.3% in February, impacted by a contraction in crude oil, natural gas, and refinery products output. However, coal and steel production recorded healthy growth. The cumulative growth for April-February stood at 2.9%, compared to 4.4% in the previous year.

Production growth in India's core infrastructure sectors fell to a three-month low of 2.3% in February, influenced heavily by a drop in the output of crude oil, natural gas, and refinery products.

Government data revealed that these eight sectors grew by 3.4% in the same month last year, with notable declines in the production of fertilizer, cement, and electricity. However, coal and steel production maintained strong growth during this period.

Cumulatively, the infrastructure sector's growth for April to February was recorded at 2.9%, down from 4.4% in the previous fiscal year. Chief Economist at Icra Ltd, Aditi Nayar, pointed out that the crisis in West Asia could further impact GDP growth in FY2027 if fuel prices soar.

(With inputs from agencies.)