8 key infrastructure sectors growth increases 6.3% in May – Times of India

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However, this growth rate was slightly lower compared to April’s 6.7 percent. The official data released on Friday revealed that fertiliser, crude oil, and cement output recorded negative growth in May.

The output of these core sectors increased by 6.5 percent during the first two months of the current fiscal year (April-May), surpassing the 4.9 percent growth recorded in the corresponding period last fiscal.

Coal, natural gas, and electricity production witnessed growth rates of 10.2 percent, 7.5 percent, and 12.8 percent, respectively, in May 2024.

Meanwhile, the growth in refinery products and steel production slowed down to 0.5 percent and 7.6 percent during the same month.

Aditi Nayar, chief economist at Icra Ltd said that although the core sector growth remained above 6 percent for the fourth consecutive month, it experienced a slight easing in May.

She further said that the heatwave affecting parts of the country and the phased parliamentary elections, which may have impacted activity and execution in certain sectors.

Meanwhile, she said that the heatwave boosted power demand, resulting in increased growth in coal and electricity production in May 2024 compared to the previous month. She expects the IIP growth print to be in the range of 4-5 percent for May 2024.