NEW DELHI: Growth in country’s key infrastructure sector slowed to a 14-month low in Dec, led by slowdown in six out of the eight sectors, posing concerns for overall industrial output data for the month.
Data released by the commerce and industry ministry on Wednesday showed the eight core sectors, spanning coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, rose 3.8% in Dec, slower than the 7.9% in Nov and lower than the 8.3% recorded in Dec last year.
Six out of the eight sectors witnessed moderation, while the crude oil segment contracted. The coal sector recorded a double digit growth during the month while the fertiliser sector grew 5.8% in Dec, higher than the 3.4% in Nov. The steel sector slowed to 5.9% in Dec from 9.4% in Nov. The cement sector grew 1.3% during Dec after contracting 4% in Nov.

“As expected, the core sector growth slowed to a 14-month low of 3.8% in Dec weighed by base normalisation. While seven out of eight sectors witnessed a year-on-year increase in output, growth was seen moderating in most sectors,” said Rajani Sinha, chief economist at ratings agency CareEdge.
Separate data released by the Controller General of Accounts (CGA) on Wednesday showed the fiscal deficit at the end of Dec was at Rs 9.8 lakh crore or 55% of the full year target of Rs 17.9 lakh crore. The deficit for the corresponding period last year was at nearly 60%.
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