Infrastructure Output Slows to 4.3 percent in November, Cement Production Surges
India’s infrastructure output showed signs of slowdown in November 2024, with the growth rate dropping to 4.3 percent compared to 7.9 percent in November 2023, according to the latest official data released on Tuesday. Despite this deceleration, the growth was notably higher than the 3.7 percent observed in October 2024, marking a four-month high in monthly production growth.
While most of the core sectors experienced moderated growth, cement production stood out with a substantial 13 percent increase. This surge was attributed to a low base effect from the previous year, which allowed for a strong performance in the cement sector. On the other hand, the output of crude oil and natural gas contracted, and several other sectors showed slower growth compared to the same period last year. Notable trends for November included:
- Coal production saw a 7.5 percent rise.
- Refinery products grew by 2.9 percent.
- Fertilizer output rose by 2 percent.
- Steel production increased by 4.8 percent.
- Electricity generation expanded by 3.8 percent.
For the first eight months of the current fiscal year (April-November 2024), the core sector growth stands at 4.2 percent, which is significantly lower than the 8.7 percent recorded during the same period last year. The eight core infrastructure sectors—coal, crude oil, natural gas, refinery products, fertilizer, steel, cement, and electricity—collectively account for 40.27 percent of the Index of Industrial Production (IIP), an important measure of overall industrial performance in India. Aditi Nayar, chief economist at ICRA Ltd, pointed out that the sequential improvement in November’s core sector growth was mainly driven by the sharp rise in cement production. She stated, “We expect the IIP to grow by 5-7 percent in November 2024, partly benefiting from the uptick in core sector growth.”
