Wednesday, December 10, 2025 | 10:45 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Infra sector grows by 3.2 pc in Aug

Image

Press Trust of India New Delhi
Infrastructure sector recorded a growth rate of 3.2 per cent in August, up from 3 per cent in the previous month but same as that in year-ago period, amid weak performance of coal, crude oil and natural gas segments.

The growth rate of the eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - in August 2015 was also 3.2 per cent.

The core sectors, which contribute 38 per cent to the country's total industrial production, had expanded by 3 per cent in July.

As per data released by the government, the cumulative growth of the sector during April-August period of the fiscal was 4.5 per cent against 2.4 per cent in the same period last fiscal.
 

Coal, crude oil and natural gas production dipped by 9.2 per cent, 3.9 per cent and 5.7 per cent, respectively in August.

Refinery production grew by 3.5 per cent during the month under review as against 5.8 per cent in the same month last year.

Similarly fertiliser, cement and electricity record a growth of 5.7 per cent, 3.1 per cent and 0.1 per cent in August 2016 as compared to 13.8 per cent, 5.4 per cent and 5.6 per cent respectively in August 2015.

Steel output surged by 17 per cent against a negative growth of 3.3 per cent in the same month last year.
(REOPEN DEL61)

There were mixed views of experts over industrial production growth in the month of August against the backdrop of infra sector growth data.

"With a minor uptick in core sector growth, a turnaround in the performance of non-oil merchandise exports, as well as the sharply higher expansion in auto production, the performance of the IIP in August may improve from the dismal contraction seen in July," Senior Economist at ICRA Ltd, Aditi Nayar, said.

Industrial production contracted by 2.4 per cent in July registering the worst performance in eight months mainly on account of declining output in manufacturing and capital goods sectors.

Sunil Sinha, Principal Economist at India Ratings & Research said, "Overall, there is nothing to cheer about so far as the core sector data of August 2016 is concerned and indicative of sluggish nature of industrial activity in the economy."

The core sectors, which contribute 38 per cent to the country's total industrial production, had expanded by 3 per cent in July.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 30 2016 | 6:13 PM IST

Explore News