Infra sector growth slows down to 4.2% in Aug

Business News, Nation, (New Delhi), October 2:-Growth of eight infrastructure sectors slowed down to 4.2 per cent in August on account of decline in production of crude oil and fertiliser.

The core sectors had expanded by 7.3 per cent in July 2018.

The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 4.4 per cent in August 2017.

The output of crude oil and fertiliser dipped by 3.7 per cent and 5.3 per cent respectively, according to the data released by the commerce and industry ministry on Monday.

On the other hand, coal, natural gas, and electricity production grew by 2.4 per cent, 1.1 per cent and 5.4 per cent respectively compared to 15.4 per cent, 4.2 per cent, and 8.3 per cent respectively in August 2017.

Refinery products, steel and cement also recorded positive growth.

During the April-August period of the current fiscal, these sectors grew by 5.5 per cent as against 3 per cent in the year-ago period.

These eight segments comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Commenting on the figures, rating agency ICRA said that the slowdown in growth of core sector output and automobile production, as well as an unfavourable base effect, are likely to dampen the IIP growth for August to 3-4 per cent.

-(NAV, Inputs: Agencies)

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