Core sector output slows down to 4.5% in July against 9.9% a year ago

Crude oil and natural gas production contracted by 3.8% and 0.3%, respectively, during the month under review

The output of eight core infrastructure sectors contracted to six-month low of 4.5 per cent in July against 9.9 per cent in the year-ago period, according to official data released on Wednesday.

The output of these infrastructure sectors expanded by 13.2 per cent in June, 19.3 per cent in May, 9.5 per cent in April, 4.8 per cent in March, 5.9 per cent in February and 4 per cent in January.

The production growth of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 11.5 per cent in April-July this fiscal against 21.4 per cent a year ago.

Crude oil and natural gas production contracted by 3.8 per cent and 0.3 per cent, respectively, during the month under review.

In July, the fertiliser output rose by 6.2 per cent against 0.6 per cent in the same month last year.

The growth rate in the output of coal, refinery products, steel, cement and electricity slowed down to 11.4 per cent, 6.2 per cent, 5.7 per cent, 2.1 per cent and 2.2 per cent, respectively.

Commenting on the numbers, domestic rating agency Ind-Ra said that the year-on-year growth in the core sector output sharply decelerated to a six-month low of 4.5 per cent in July.

"Ind-Ra believes that the ongoing recovery has still a long way to go because the output of some of the core segments is still lower than the pre-pandemic level," the agency said.