New Delhi, Mar 1 (KNN) India’s eight core infrastructure sectors recorded a 4.6 per cent growth in January, slightly lower than December’s revised 4.8 per cent but still the second-highest increase in six months.
On a sequential basis, the Index of Core Industries (ICI) rose 2.4 per cent from December, reaching a 10-month high of 173, marking the highest output level in 2024-25 so far.
The growth was primarily driven by a 14.5 per cent surge in cement production, reflecting strong demand from the real estate and infrastructure sectors, and an 8.3 per cent rise in refinery products, both registering their sharpest expansion in over a year. Coal production grew at 4.6 per cent, the slowest increase in four months.
Fertiliser output rose 3 per cent, a five-month high, but crude oil production contracted by 1.1 per cent, marking its eighth decline in nine months. Natural gas output also fell 1.5 per cent, extending its contraction streak to seven months.
Steel and electricity generation increased by 3.7 per cent and 1.3 per cent, respectively, their slowest growth in four months.
Meanwhile, the Commerce and Industry Ministry revised October’s core sector growth to 3.8 per cent from an earlier estimate of 3.1 per cent, while November’s growth was raised to 4.4 per cent from 4.3 per cent.
Madan Sabnavis, chief economist at Bank of Baroda, attributed the strong cement demand to real estate and road construction activity, while subdued electricity growth reflected lower business activity.
He also linked the decline in crude oil and natural gas output to supply-side challenges and higher imports.
ICRA economist Rahul Agrawal suggested that core sector trends indicate a January industrial output (IIP) growth similar to December’s 3.2 per cent. The official IIP data will be released on March 12.
(KNN Bureau)
