Infra sectors growth slips to 5-month low of 2.9% in Feb

The output of eight key infrastructure sectors slowed down to a five-month low of 2.9 per cent in February, as against 7.1 per cent growth registered a year ago, according to official data released on Friday.

Kindly note the image has only been published for representational purposes. Photograph: Kind courtesy Pixabay

On a monthly basis, the production growth of the core sectors was lower than the 5.1 per cent expansion recorded in January.

The previous low level of growth at 2.4 per cent was recorded in September 2024.

In February, production of crude oil and natural gas recorded a negative growth.

The production growth of coal, refinery products, steel and electricity moderated to 1.7 per cent, 0.8 per cent, 5.6 per cent, and 2.8 per cent, respectively, against 11.6 per cent, 2.6 per cent, 9.4 per cent and 7.6 per cent in February last year.

However, fertiliser and cement output rose to 10.2 per cent and 10.5 per cent, respectively, during the month under review.

The growth of core sectors — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — was 4.4 per cent during April-February this fiscal.

It was 7.8 per cent in the same period last fiscal.

The eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP), which measures overall industrial growth.

Aditi Nayar, Chief Economist, head – Research & Outreach, ICRA Limited said, “The core sector growth moderated to a five-month low of 2.9 per cent in February 2025 from 5.1 per cent in January 2025, although this was partly on account of the leap year-related high base.

“As many as five of the eight indicators including coal, crude oil, natural gas, refinery and cement output, recorded a weaker YoY performance in February 2025 vis-à-vis the previous month.

“Given these trends, we expect the IIP growth to ease to 3.0-3.5 per cent in February 2025 from 5.0 per cent in January 2025.”