The expansion of eight essential infrastructure sectors witnessed a slowdown, reaching 6.7 per cent in February, as reported by official information launched on Thursday. This deceleration was primarily attributed to the underperformance of sectors akin to fertiliser. Regardless of the general slowdown, there was a notable improve in progress in comparison with the previous months, marking the very best sequential progress charge noticed within the final three months.
In January, the expansion charge of those eight core sectors stood at 4.1 per cent, contrasting with a sturdy 7.4 per cent recorded in February 2023. Cumulatively, the expansion charge within the output of those sectors throughout April-January of the fiscal yr noticed a decline to 7.7 per cent, down from 8.2 per cent throughout the identical interval in 2022-23. Of explicit concern was the unfavorable progress within the output of fertiliser, additional contributing to the general slowdown.
These eight core sectors collectively account for 40.27 per cent of the nation’s Index of Industrial Manufacturing (IIP).
Evaluation of the information revealed a decline within the progress charges of refinery merchandise, metal, and electrical energy output throughout February. Nonetheless, sectors akin to coal, crude oil, pure gasoline, and cement witnessed wholesome progress charges of 11.6 per cent, 7.9 per cent, 11.3 per cent, and 10.2 per cent respectively throughout the identical interval.
Aditi Nayar, chief economist and head of analysis & outreach at ICRA, famous that the core sector progress improved to a three-month excessive in February. Among the many eight industries, coal, cement, and pure gasoline displayed double-digit enlargement. She anticipated that with the wholesome enchancment within the core sector progress, the IIP is predicted to document an enlargement of 6.0-6.5 per cent in February 2024.
The abstract of the Index of Eight Core Industries:
Cement: Cement manufacturing (weight: 5.37 per cent) elevated by 10.2 per cent in February, 2024 over February, 2023. Its cumulative index elevated by 9.1 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
Coal: Coal manufacturing (weight: 10.33 per cent) elevated by 11.6 per cent in February, 2024 over February, 2023. Its cumulative index elevated by 12.1 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
Crude Oil: Crude Oil manufacturing (weight: 8.98 per cent) elevated by 7.9 per cent in February, 2024 over February, 2023. Its cumulative index elevated by 0.5 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
Electrical energy: Electrical energy technology (weight: 19.85 per cent) elevated by 6.3 per cent in February, 2024 over February, 2023. Its cumulative index elevated by 6.8 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
Fertilisers: Fertiliser manufacturing (weight: 2.63 per cent) declined by 9.5 per cent in February 2024 over February, 2023. Its cumulative index elevated by 4.1 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
Pure Fuel: Pure Fuel manufacturing (weight: 6.88 per cent) elevated by 11.3 per cent in February, 2024 over February, 2023. Its cumulative index elevated by 6.0 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
Petroleum Refinery Merchandise: Petroleum Refinery manufacturing (weight: 28.04 per cent) elevated by 2.6 per cent in February, 2024 over February, 2023. Its cumulative index elevated by 3.8 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
Metal: Metal manufacturing (weight: 17.92 per cent) elevated by 8.4 per cent in February, 2024 over February, 2023. Its cumulative index elevated by 12.9 per cent throughout April to February, 2023-24 over corresponding interval of the earlier yr.
