April’s Infrastructure Production Growth in India Reaches Lowest Point in Eight Months

India’s Infrastructure Growth Slows to 0.5% in April

According to government data released on Tuesday, India’s infrastructure output experienced a year-on-year increase of just 0.5% in April, marking its slowest growth in eight months. This slowdown in progress was primarily influenced by declines in crude oil and refinery products.

The infrastructure index, which monitors activity in eight key sectors and represents 40% of the nation’s industrial production, was adjusted to show a growth rate of 4.6% for March, surpassing the previously reported figure of 3.8%.

Sector-wise Performance

In April, crude oil output saw a significant reduction of 2.8% when compared to the previous year, which is a decrease from the 1.9% drop recorded in March. Meanwhile, natural gas production experienced a minor decline of 0.4%, an improvement from the steeper 12.7% fall in March.

On a positive note, cement production surged by 6.7% in April, although this was a decline from the revised 12.2% growth seen in March. Similarly, steel output increased by 3% compared to a revised rise of 9.3% in the previous month.

Fertilizer manufacturing recorded a downturn of 4.2%, contrasting with the 8.8% growth observed in the prior month. Conversely, coal production rose by 3.5% year-on-year, up from 1.6% growth in March.

Electricity generation also increased by 1% in April, a stark decrease from a revised 7.5% rise the month before. Additionally, the output of refinery products plummeted by 4.5%, in contrast to a minor 0.2% dip observed in the previous month.

Conclusion

For the fiscal year 2024-25, core sector output saw an increase of 6.9% in April, contributing positively towards the overall industrial growth outlook.