Key infra sectors’ growth slows to 8-month low of 0.5% in April

The output of eight key infrastructure sectors slowed down to an eight-month low of 0.5 percent in April due to contraction in the production of crude oil, refinery products and fertiliser.

According to official data released on Tuesday, these eight sectors — coal, crude oil, refinery products, natural gas, steel, cement, electricity and fertiliser — expanded by 6.9 per cent in April 2024. In March this year, output of these sectors grew by 4.6 per cent.

During the month under review, production of crude oil, refinery products and fertiliser recorded a negative growth.

The previous low growth rate was recorded in August 2024, when these sectors expanded by -1.5 per cent.

The growth rate in the production of coal, natural gas, steel, and electricity moderated to 3.5 per cent, 0.4 per cent, 3 per cent, and one per cent, respectively, in April 2025.

However, cement production rose by 6.7 per cent in April this year as against 0.2 per cent in the same month last year.

Aditi Nayar, Chief Economist, ICRA Ltd, said the performance of the core sector “deteriorated significantly” in April.

“Based on the tepid rise in the core sector and the performance of other available high frequency indicators, ICRA expects the IIP (Index of Industrial Production) growth to moderate sharply to about 1 per cent in April,” she said. The eight core sectors contribute 40.27 per cent to the IIP, which measures the overall industrial growth.