: Core sector growth slows down to 4.3% in March #FinanceIndia #StockMarketNEWS #Business Press Trust of India New Delhi The production growth of eight infrastructure sectors slowed down to 4.3%

@StockMarketNEWS Wed 04 May, 2022

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Core sector growth slows down to 4.3% in March #FinanceIndia #StockMarketNEWS #Business
Press Trust of India

New Delhi

The production growth of eight infrastructure sectors slowed down to 4.3% in March due to a decline in the output of coal and crude oil, though for the full 2021-22 fiscal, the core sector recorded a 10.4% expansion, according to official data released on Friday.

The eight infrastructure sectors coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity had expanded by 6% in February.

During April-March 2021-22, the eight sectors grew by 10.4% compared to a contraction of 6.4% in 2020-21.

The output of coal and crude oil contracted by 0.1% and 3.4% in March.

The growth in the production of natural gas, steel, cement and electricity slowed down to 7.6%, 3.7%, 8.8% and 4.9% during the month under review as against 12.3%, 31.5%, 40.6% and 22.5% in March 2021 respectively, the data showed.

Refinery Products and fertilizers output grew by 6.2% and 15.3% respectively in March this year.

Commenting on the numbers, Aditi Nayar, Chief Economist, ICRA Ltd, said that the pace of core sector growth slowed to a “sedate??? 4.3% in March 2022, with a slowdown in five of the eight constituents.

The double-digit growth recorded by fertiliser output in March came on the back of a very low base, she said adding in spite of the pickup in mobility, the growth in output of refinery products moderated in March.

“While the growth of the core sector output and non-oil merchandise exports slowed in March, several high-frequency indicators witnessed an improvement, based on which we expect the YoY IIP (index of industrial production) growth to rise modestly to 3-3.5% in that month,??? Nayar added.

The eight core industries comprise 40.27% of the weight of items included in the IIP.