India’s February core sector growth fastest in three months
NEW DELHI : The output of eight core infrastructure sectors, which account for two-fifths of India’s industrial output, expanded by 6.7% in February—the fastest pace in three months, according to data released by the ministry of commerce and industry on Thursday. The growth in India's eight key infrastructure industries—coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas—was also revised to 4.1% for January, from 3.7% earlier. During February 2023, core sector output had expanded at 7.4%.
The latest core sector data showed that seven of the eight core industries reported a rise in production. Output in fertilisers contracted during the month. “There has been all-round performance across all sectors barring fertilisers, which can be explained by high base effect as well as the fact that this is the period of harvest where there is less demand for the products," said Madan Sabnavis, chief economist at Bank of Baroda.
“IIP growth can be expected to be good at between 4-5%, which is also reflected in growth in electricity by 6.3%," Sabnavis added. Core sector output contributes 40.27% to the index of industrial production. During February, coal supported the core industries’ output growth with an 11.6% increase in production, while crude oil production expanded by 7.9% after having contracted in December, commerce ministry data showed.
Natural gas production expanded at 11.3%. In February 2023, coal sector output had expanded by 9%, crude oil production contracted by 4.9%, and natural gas production by 3.1%. India’s manufacturing activity hit a five-month high in February, driven by a sharp uptick in orders and lower input costs.
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