India’s infrastructure output rises 4.8% in August on strong cement, power growth

India’s infrastructure output grew 4.8 per cent year-on-year in August, government data showed on Monday, as strong growth in cement and electricity production helped offset weakness across several energy-related sectors.

Infrastructure output had expanded a revised 5 per cent in July. The latest data is the third release under India’s new infrastructure output series, which uses 2022-23 as the base year and expands the core-sector basket to include iron ore.

Cement production rose 12.5 per cent in August, compared with a revised 12.7 per cent increase in July. Electricity generation grew 11.6 per cent, accelerating from a revised 8.4 per cent rise in the previous month.

Steel production also strengthened, rising 3.4 per cent in August against revised growth of 1.9 per cent in July.

Iron ore output increased 5.5 per cent, although the pace slowed sharply from a revised 29.5 per cent growth in July. Refinery products production rose 2.6 per cent in August, compared with a revised 3 per cent increase a month earlier.

Energy, fertiliser sectors remain weak

The infrastructure data also showed continued weakness in several energy and industrial segments.

Coal production declined 3.8 per cent in August, reversing from a 7.6 per cent increase in July. Crude oil output fell 3.6 per cent, after declining 5.3 per cent in the previous month.

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Fertiliser production contracted 12.4 per cent in August, following an 8 per cent decline in July. Natural gas production fell 4.9 per cent, compared with a revised 3 per cent contraction in July.

Infrastructure growth improves in April-August

For the April-August period, cumulative infrastructure output growth stood at 4.3 per cent year-on-year, up from 2.4 per cent in the corresponding period last year.

The August data comes as policymakers continue to track the performance of India’s industrial and infrastructure sectors amid broader efforts to sustain economic growth through higher investment and domestic demand.