India Jan infrastructure growth slowest in 5 months at 3.4%

India’s infrastructure sector grew at its slowest pace in five months at 3.4% in January as compared with 5.6% in December, mainly due to fall in cement, refinery and fertilizer output, government data showed on Tuesday, raising concerns over the overall industrial recovery.

India’s infrastructure sector grew at its slowest pace in five months at 3.4% in January as compared with 5.6% in December, mainly due to fall in cement, refinery and fertilizer output, government data showed on Tuesday, raising concerns over the overall industrial recovery.

Labourers work at a flyover construction site in Jammu. (AP File Photo)

During April-January, the eight core industries grew 4.8% as compared with 2.9% a year ago.

In January, steel output was up 11.4%, natural gas 11.9%, coal 4.8% and crude oil 1.3%.

However, cement output was down 13.3% while petroleum refinery product was down 1.5% and fertilizer 1.6%.

The slower growth in core industries, which contribute 38% to the index of industrial production, remains a concern for the broad-based recovery of the economy hit by the demonetization drive.

The IIP had contracted by 0.4% in December while the economy is projected to grow close to 7% in 2016-17 as compared with 7.9% in the previous year.