India’s core sector grew marginally to 3.8% in December from a 9-month low of 3.4 in November, data released by commerce and industry ministry showed. Production of eight infrastructure sectors expanded by 3.8 per cent in December 2021 against a 0.4 per cent contraction in the same month last year on better show by coal, cement and refinery products.
The disaggregated data shows mixed cues, while, Steel & crude contracted, other sectors recorded positive growth in December 2021. Cement & Natural gas recorded double digit growth where as the remaining four displayed modest growth & recovery.
The growth rate of the eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — stood at 12.6 per cent during April-December this fiscal as against a negative growth of 9.8 per cent during the same period last fiscal.
According to the data, production of coal rose by 5.2 per cent, natural gas by 19.5 per cent, refinery products by 5.9 per cent, fertilisers by 3.5 per cent, cement by 12.9 per cent, and electricity by 2.5 per cent in December.
The output of crude oil and steel declined by 1.8 per cent and 1 per cent respectively during the period under review.
Commenting in the data, ICRA Ltd Chief Economist Aditi Nayar said, “We expect the IIP to report a feeble rise of less than 2 per cent on a YoY basis in that month, and print below the expansion displayed by the core sector for the fourth consecutive month”.
The eight core industries hold 40.27 per cent weight in the Index of Industrial Production (IIP).