Core infrastructure sectors' output grows 1.7 pc in April

India's eight core infrastructure sectors saw a 1.7% production growth in April, driven by higher steel, cement, and electricity output, outpacing last year's 1% expansion.

Production growth in eight core infrastructure sectors rose to a two-month high of 1.7 per cent in April, driven by higher output of steel, cement and electricity, according to government data released on Wednesday.

These eight sectors expanded by 1 per cent in the same month last year. The pace of expansion was 1.2 per cent in March.

Coal, crude oil, natural gas, refinery products, and fertiliser output recorded negative growth during the month under review.

Steel, cement and electricity production rose by 6.2 per cent, 9.4 per cent and 4.1 per cent, respectively, in April.

Commenting on the data, Megha Arora, Director - Economics, India Ratings & Research, said April's improved core sector performance is expected to increase the upcoming industrial production growth to around 5 per cent.

Core sectors account for 40.27 per cent of the Index of Industrial Production (IIP).

''Ind-Ra expects core sector recovery to continue with a growth forecast of around 3 per cent in May 2026 due to a low base and likely improved fertilizer production,'' Arora said.

Rahul Agrawal, Senior Economist, ICRA Ltd, said that as many as five of the eight sectors registered a contraction in output in the month, barring steel, cement, and electricity generation, suggesting that economic activity in some sectors was impacted by the West Asia crisis.