There was a decline in the production of crude oil, natural gas and electricity.
| Photo Credit: JOTHI RAMALINGAM B
The pace of growth of eight key infrastructure sectors slackened to 4.3% in May on account of a decline in the production of crude oil, natural gas and electricity, according to the data released by the government on Friday.
The core sector growth stood at 19.3% in May 2022.
During April-May this fiscal, the output growth of these eight sectors slowed down to 4.3 per cent against 14.3% in the year-earlier period, the data showed.
Commenting on the numbers, Aditi Nayar, Chief Economist, Head – Research & Outreach, Icra Ltd. said the growth remained broadly stable in May.
“Icra expects the YoY (year-on-year) IIP (index of industrial production) growth to print at about 4-6% in May 2023,” she said.
The eight core industries comprise 40.27% of the weight of items included in the IIP.
The output of crude oil contracted by 1.9% during the month under review. Similarly, the production of natural gas and electricity dipped by 0.3% each in May.
The growth rate of the coal output declined to 7.2% in May against 33.5% in the same month last year.
The growth rate in the output of refinery products too declined to 2.8% in May against 28% a year earlier.
The rate of growth in the production of fertilizer, steel and cement slowed down to 9.7%, 9.2% and 15.5%, respectively, in May this year compared with 22.9 %, 15.1% and 26.2% in May 2022.
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