Key infra sector growth at 5-month high of 8.2% in June

Core sector growth in June is the highest since January 2023 when the key sectors expanded at 9.7 per cent. 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.

In June, steel output jumped by 21.9 per cent as against 3.3 per cent in the same month last year. Natural gas production increased by 3.6 per cent during the month under review as compared to 1.2 per cent in June 2022.

Coal output growth slowed down to 9.8 per cent in June 2023 as against 32.1 per cent in June 2022.

The growth rate in the production of refinery products, fertiliser, cement and electricity slowed down to 4.6 per cent, 3.4 per cent, 9.4 per cent and 3.3 per cent as against 15.1 per cent, 8.2 per cent, 19.7 per cent, and 16.5 per cent respectively.

Crude oil production dipped by 0.6 per cent.

Commenting on the numbers, ICRA Ltd Chief Economist Aditi Nayar said that the tardy onset of the monsoon contributed to improved performance of electricity and coal.

“With the boost seen in mining and electricity from a dryer-than-normal June, we expect the year-on-year IIP (index of industrial production) growth to print at 4-6 per cent in June 2023, in spite of the moderation in the year-on-year performance of several available high-frequency indicators,” she said.