Growth of eight key infrastructure sectors slowed down to 8.2 per cent in June 2023 compared to the year-ago month due to a decline in the production of crude oil, natural gas, and electricity, according to the official data released on Monday.
The core sector growth was 13.1 per cent in June 2022, the Commerce Ministry data showed. Its growth stood at 4.3 per cent in May 2023.
The production growth in June, however, was at a five-month high. In January, the key sectors expanded at 9.7 per cent while in May 2023 the growth rate was 5 per cent.
The output growth of the eight sectors slowed down to 5.8 per cent in April-June 2023-24, against 13.9 per cent in the year-ago period.
Aditi Nayar, chief economist and head (research & outreach) at ICRA, said, “The core sector growth recorded a resounding rise to a 5-month high of 8.2 per cent in June 2023, from 5 per cent in May 2023, led by six of the eight constituents except for cement and fertilisers. The tardy onset of the monsoon contributed to improved performance of electricity, coal etc.
She added that with the boost seen in mining and electricity from a dryer-than-normal June, ICRA expects the YoY IIP growth to print at 4-6 per cent in June 2023, in spite of the moderation in the YoY performance of several available high-frequency indicators.”
(With Inputs From PTI)
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