India’s eight core infrastructure industries grew by a slower 3.1% in December down from 6.3% in November, dashing hopes of a more broad-based and sustained industrial rebound following the previous month’s strong numbers.
Pulled down by contraction in the output of crude oil and natural gas and flat growth of refinery products output, the eight infrastructure industries, which have a combined weightage of 38% in the overall IIP, remained weak.
The output of these industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — had grown by 6.3% in November and by 6.1% in December 2010.
Hopes of an industrial rebound had sprung anew after India’s factory output grew by 5.9% in November, a sharp rise from a contraction of -4.7% in October.
Cement output, however, grew by a strong 13.3% in December in a signal the construction activity has picked pace during the busy-season.