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.
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.