India's core sector output expands at six-month high of 8.4% in April

Production growth of eight infrastructure sectors rose to a six-month high of 8.4 per cent in April on the back of better performance by coal, refinery products and electricity segments, according to official data released on Tuesday.

The output of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity had expanded by 4.9 per cent in March 2022 while the same was exceptionally high at 62.6 per cent in March 2021 due to the low base effect.

The output growth in April is the highest since October 2021 when the core sector grew by 8.7 per cent.

According to the data, coal output rose sharply by 28.8 per cent while electricity production increased by 10.7 per cent.

The output of petroleum refinery products increased by 9.2 per cent in April 2022. The production of natural gas increased by 6.4 per cent, fertilisers' by 8.7 per cent, and cement by 8 per cent.

On the other hand, the output of crude oil contracted by 0.9 per cent against a 2.1 per cent decline in April, the data showed. Steel production dipped by 0.7 per cent during the month.

Commenting on the numbers, ICRA Ltd Chief Economist Aditi Nayar said, "While the core sector growth rose to a six-month high 8.4 per cent in April, benefitting from the constrained base of the second wave of Covid-19 in India, it trailed our forecast of 11-12 per cent by a wide margin, dampened by a contraction in steel and crude oil".