India’s Infrastructure Growth Rises to 1.7% in April as Core Sectors Improve

India’s eight core industries grew 1.7% in April, improving from a revised 1.2% in the previous month.

The rise was led by cement, steel, coal, and electricity, while crude oil, natural gas, refinery products, and fertilisers stayed in contraction.

What Drove India’s Infrastructure Growth in April? 

The April performance improved mainly because construction and power-linked activity performed better.

However, this was not a broad-based recovery. A few core industries supported the overall number, while energy and fertiliser segments continued to weigh on momentum.

How Did the Eight Core Industries Perform?

Cement was the strongest performer in April, while fertilisers recorded the sharpest decline. 

Why are Core Sector Industries Important for IIP?

The eight core industries account for 40.3% of the Index of Industrial Production (IIP).

This makes them an early indicator of broader industrial activity. A stronger core sector performance can support IIP, while weakness in energy-linked areas may limit overall industrial momentum.

What Does the Sector Trend Show?

The April data shows a split trend in the infrastructure sector in India.

Construction-linked activity remained supportive, but the drag from crude oil, natural gas, refinery products, and fertilisers kept core sector growth modest at 1.7%.

Final Outlook

India’s infrastructure output improved in April, but the recovery remains uneven.

Going ahead, the key factor will be whether growth becomes more balanced across construction, energy, and manufacturing-linked sectors. A stronger and broader improvement could give a clearer signal for the next IIP data.

Source: https://www.moneycontrol.com

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