India’s Infrastructure Output Grows 5% YoY in June, Fastest Pace in Five Months

India’s infrastructure output (ININFR=ECI) rose 5% year-on-year in June, the quickest expansion in five months, according to data released by the government on July 20. The increase follows a revised 3.2% rise in May and a 5.2% gain in January under the same revised series.

Reuters

The figures are the first published under a revised series that uses 2022-23 as the base year, replacing the 2011-12 base. The new methodology also expands the core sector basket from eight to nine industries by adding iron ore. The government’s release notes that the revised series aims to provide a more current picture of infrastructure activity.

Reuters

• Cement: Output rose 9.8% in June, up from an 8.4% increase in May.

Reuters

• Steel: Production increased 4.6%, slightly below the 5.1% growth recorded in May.

Reuters

• Electricity: Generation climbed 9.8%, compared with an 11.2% rise in May.

Reuters

• Coal: Production grew 1.4% after a 9.5% decline the month before.

Reuters

• Iron ore: Output surged 43.9%, outpacing a 19% rise in May.

Reuters

• Crude oil: Output fell 4.2%, matching the decline reported for May.

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• Fertiliser: Production declined 3.3% following a 1% contraction in May.

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• Natural gas: Output shrank 7.4% versus a 5% drop in May.

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• Refinery products: Output fell 4.7%, an improvement over the 8.2% fall in May.

Reuters

The cumulative infrastructure output growth for the April-June quarter increased to 3.6% year-on-year, up from a 1% rise in the same period last year.

Reuters

The government’s data suggest that strong iron ore and electricity output are offsetting weakness in other energy-related sectors, sustaining overall infrastructure expansion. The revised series, with its updated base year and broader industry coverage, may influence future policy assessments and investment decisions by providing a more timely gauge of sectoral performance.

Reuters