(Mint)
The output of eight core infrastructure sectors, which account for two-fifths of India’s industrial output, expanded by 0.5% in April, its lowest in the last eight months, from 4.6% in March.
It was recorded at 6.9% in April 2024. The growth in March 2025 was revised from 3.8% to 4.6%.
Only two of the eight core industries—coal and natural gas—reported a sequential rise in production during April, according to the provisional data released by the ministry of commerce and industry on Tuesday.
Core sector output contributes 40.27% to the Index of Industrial Production (IIP).
To be sure, India’s industrial production rebounded in March, recovering from a six-month low in February, according to provisional data released by the ministry of statistics and programme implementation (MoSPI) last month.
Industrial output rose 3% year-on-year in March, slightly above the 2.9% growth in February. The previous low, recorded in August 2024, was zero.
Coal, gas output rise Interestingly, of the eight core industries, only coal and natural gas registered a month-on-month increase in production in April.
Coal output rose by 3.5% annually in April, up from 1.6% growth registered in the previous month. Natural gas production rose 0.4%, compared to a contraction of 12.7% in March.
Production in three sectors — crude oil, refinery products and fertilisers — contracted in April.
Crude oil production contracted by 2.8% annually in April, compared to a 1.9% contraction in March. Refinery production contracted 4.5% in April, against a 0.2% growth registered in the previous month. Fertiliser production contracted 4.2%, compared to an 8.8% growth in March.
Production of steel, cement and electricity reported growth in April, albeit slower than the previous month. During April, steel production reported a 3% growth, cement 6.7%, and electricity 1%.
Interestingly, India’s manufacturing sector expanded at its fastest pace in 10 months in April, driven by strong demand and a sharp rise in output.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 58.2 in April from 58.1 in March and 56.3 in February. The index was at 57.7 in January and 56.4 in December. A reading above 50 indicates expansion, and below 50 a contraction.
“The core sector growth at 0.5% is quite disappointing, even though the base effect was strong,” said Madan Sabnavis, chief economist at the Bank of Baroda.
“The infrastructure-based industries, cement and steel, had registered growth of 6.7% and 3% respectively. Construction activity has helped in keeping output ticking,” he said.
