According to official data released on Friday, India’s core infrastructure output increased by 4% in December 2024, slowing from the 5.1% rise registered in the same month the previous year. The drop in growth momentum was also noticeable monthly. In November 2024, the expansion was 4.4%, indicating a minor decline in December.
Natural gas production was one of the eight important infrastructure industries that had negative growth, adding to the overall slowdown. Coal, refinery products, fertiliser, and steel output growth have all slowed. Coal output increased by 5.3%, a decrease from 10.8% in December 2023. Similarly, refinery products, fertilisers, and steel saw growth rates of 2.8%, 1.7%, and 5.1%, respectively, compared to 4.1%, 5.9%, and 8.3% the previous year.
However, certain sectors demonstrated resiliency. In December, cement production increased by 4%, and electricity output increased by 5.1%.
Core sector growth in the current fiscal year was 4.2% from April to December, which was much lower than the 8.3% expansion registered during the same time previous year. The eight core industries account for 40.27% of the IIP, a major indication of overall industrial growth in the country.
