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The output of eight key infrastructure sectors slowed down to 3.8 per cent in March, as against 6.3 per cent growth registered a year ago on account of moderate expansion in sectors like coal and crude oil, according to official data released on Monday.
Photograph: Carlo Allegri/Reuters
On a monthly basis, the growth rate in the production of these sectors was slightly higher than the 3.4 per cent expansion recorded in February.
In March, production of crude oil and natural gas recorded a negative growth.
The production growth of coal, refinery products, steel and electricity moderated to 1.6 per cent, 0.2 per cent, 7.1 per cent, and 6.2 per cent, respectively.
Fertiliser production rose 8.8 per cent in March 2025 against 1.3 per cent contraction in the same month last year.
Cement production growth rose to 11.6 per cent in March 2025 from 10.6 per cent in the year-ago month.
The growth of core sectors — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — was 4.4 per cent during April-March 2024-25 fiscal.
It was 7.6 per cent in the same period last fiscal year.
The eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP), which measures overall industrial growth.
Commenting on the data, Aditi Nayar, Chief Economist, ICRA, said based on the expansion in the core sector, ICRA expects the IIP growth to print at 3-3.5 per cent in March 2025.
