Core sector expands 1.7%, but 5 industries contract

NEW DELHI: Amid the conflict in West Asia, output in India's eight core infrastructure industries inched up to 1.7% in April from the upwardly revised 1.2% in March, latest official data released Wednesday showed. Notably, as many as four industries linked to energy sector and the fertiliser industry registered a decline in output during the month, showing the impact of the blockade of the strait of Hormuz in the wake of the conflict in the Persian Gulf region.

Data showed output in coal (-8.7%) and fertilisers (-8.6%) contracted for the second consecutive month, while crude oil (-3.9%) output declined for the eighth consecutive month. Also, output in natural gas (-4.3%) and refinery products (-0.5%) shrank in April after a positive showing in March. However, output in steel (6.2%) and cement (9.4%) sectors accelerated during the month, reflecting continued govt capex. Electricity generation (4.1%) also picked up pace on account of a low base and high demand due to the ongoing heat wave.

The eight core sectors constitute 40.3% of the Index of Industrial Production (IIP), which measures output in the country's industrial sector. The conflict in West Asia is expected to have weighed heavily on the industrial sector, which had earlier slipped to a five-month low of 4.1% in March.


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