India's Core Sector Grows 1.7% Amid Declines in Key Industries
India's core infrastructure sectors expanded by 1.7% in April, despite five industries facing output declines, notably in energy. This trend may signal ongoing challenges for the industrial sector due to geopolitical tensions in West Asia.
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In April, India's eight core infrastructure industries recorded a 1.7% growth, an increase from 1.2% in March. However, significant contractions were observed in coal (-8.7%), fertilizers (-8.6%), crude oil (-3.9%), natural gas (-4.3%), and refinery products (-0.5%).
Steel (6.2%) and cement (9.4%) industries showed growth, supported by government capital expenditure. Electricity generation increased by 4.1%, driven by high demand during a heat wave. The eight sectors represent 40.3% of the Index of Industrial Production. The ongoing conflict in West Asia is likely impacting the overall industrial output, which previously fell to a five-month low of 4.1% in March.
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