Key Takeaways
- India's infrastructure output rose 7.9% year-on-year in September.
- Electricity and refinery products drove the highest growth in the sector.
- The index, tracking nine sectors, expanded at 5.9% in August.
India's infrastructure output surged 7.9% year-on-year in September, marking its highest level in at least two and a half years, according to government data released on Wednesday.
This growth was primarily driven by strong performances in electricity and refinery products, which contributed significantly to the overall index.
The index, which monitors activity across nine sectors and accounts for about a third of the country’s industrial production, expanded at a revised 5.9% in August.
Cement output saw a notable rise of 9.8% in September, following an 11.7% increase in August. Steel production also grew by 4.9%, compared to a revised 3.5% growth in August.
Electricity generation increased by 11.4% in September, compared to a revised 13.1% increase in August. Refinery products output rose by 10.3% in September, up from a revised 5.6% in August.
Other sectors also showed growth, with iron ore production up 18.4% in September, compared to a rise of 5.5% in August. Coal production increased by 10.7% in September, reversing a 3.8% decline in the previous month.
However, some sectors experienced contraction. Fertilizer production fell by 11.7% in September, following a 12.4% decline in the prior month. Natural gas production also declined by 4.6% in September, compared to a drop of 4.9% in August.
For the first half of the year, from April to September, infrastructure output grew by 5.1%, up from 2.5% in the same period last year.
