The growth rate for eight essential infrastructure sectors decelerated to 6.1% in July 2024, a notable decline attributed to reduced output in crude oil and natural gas. This figure, released on Friday, represents a slowdown from the previous month’s growth rate of 5.1%, although it remains an improvement over the 6.1% recorded during the same period last year.
The core sectors, which include coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity, collectively contribute 40.27% to the Index of Industrial Production (IIP). In July, these sectors experienced varied growth rates. Notably, crude oil and natural gas output contracted by 2.9% and 1.3%, respectively, indicating significant challenges in these areas. Meanwhile, production growth for coal, steel, cement, and electricity also slowed to 6.8%, 7.2%, 5.5%, and 7% respectively.
Conversely, the production of refinery products and fertilisers saw positive growth, with increases of 6.6% and 5.3%, respectively. Despite the overall deceleration, these sectors provided a stabilising effect on the growth rate of the core infrastructure sectors. The slowdown observed in July highlights the ongoing challenges within the crude oil and natural gas sectors while reflecting a mixed performance across the broader infrastructure landscape. As the fiscal year progresses, these dynamics will likely influence broader industrial and economic trends.
