Core sector progress slows to 5-month low in Feb; crude, pure fuel output slips, ETCFO
India’s core sector output slowed to a five-month low of two.9% in February from 5.1% in January, as progress throughout most infrastructure sectors moderated, in response to official knowledge launched Friday. The expansion was 7.1% a yr earlier and specialists cited base impact for the slowdown final month.
“The infrastructure output progress was the bottom in 5 months, hit by an unfavourable base impact,” stated Paras Jasrai, affiliate director at India Rankings and Analysis (Ind-Ra).
The core sector contains eight industries: coal, crude oil, pure fuel, refinery merchandise, fertilisers, metal, cement and electrical energy.
Madan Sabnavis, chief economist at Financial institution of Baroda, famous that February’s progress was primarily pushed by sturdy performances within the metal and cement sectors.
Six of those industries grew in February, with fertiliser output surging to an almost two-year excessive of 10.2%.
“Fertiliser progress although in double digits is extra a base impact push up and partial restocking by corporations,” Sabnavis defined.
Cement recorded the quickest progress at 10.5%.
“The cement output grew as a result of sustained pickup in authorities capital expenditure,” Jasrai stated.
Subsequent was metal (5.6%), adopted by electrical energy (2.8%), coal (1.7%) and refinery merchandise (0.8%).
Crude oil and pure fuel output declined by 5.2% and 6.0%, respectively, from a yr earlier.
“The adverse progress is because of decrease demand circumstances,” stated Sabnavis. Total, the core sector progress slowed to 4.4% within the first 11 month of fiscal 2024-25 (until February) from 7.8% within the corresponding interval final yr.
These eight sectors account for 40.27% weight within the Index of Industrial Manufacturing (IIP), which measures industrial exercise.
IIP progress improved to five% in January 2025 from 3.2% in December.
Ind-Ra anticipates core sector progress of round 4.0% in March, whereas Financial institution of Baroda tasks 4.5%.
For IIP, Ind-Ra estimates round 3.0% progress in February, whereas Financial institution of Baroda expects it to be within the vary of three.0-3.5%.
