New Delhi, Oct 29 (FN Bureau) Growth in eight infrastructure sectors rose to 4.4 % in September 2021 compared to the corresponding month last year, as per data released by the Commerce and Industry Ministry, on Friday. The output is, however, down from 11.5% in August and 9.4 per cent in July 2021. The Index of eight core industries (ICI) measures the combined and individual performance of production in selected eight core industries and comprises 40.27 % of the weight of items included in the Index of Industrial Production (IIP). The infrastructure output witnessed a muted growth of 0.6 % in September 2020 when the pandemic hit industrial activity across the country.
The output of eight infrastructure sectors of coal, natural gas, refinery products, fertilizers, steel, cement and electricity industries increased in September 2021 over the corresponding period of last year. The growth rate of ICI during April-September 2021-22 was 16.6% as compared to the corresponding period of FY21. Coal production increased by 8.1 % in September, 2021 over September, 2020 and its cumulative index increased by 11.7 per cent during April to September, 2021-22 over corresponding period of the previous year. Crude oil production declined by 1.7 % in September, 2021 over September, 2020, with its cumulative index declining by 2.9 per cent during April to September, 2021-22 over the corresponding period of previous year. Natural Gas production increased by 27.5 % in September 2021 over September, 2020 and its cumulative index increased by 22.1 % during April to September, 2021-22 over the corresponding period of previous year. Petroleum refinery production increased by 6.0 % cent in September 2021 over September, 2020 while its cumulative index increased by 11.2 % during April to September, 2021-22 over the corresponding period of previous year.
Fertilizer production increased by 0.02 % in September 2021 over September, 2020 and its cumulative index decreased by 1.3 % during April to September, 2021-22 over the corresponding period of previous year. Steel production increased by 3.0 % in September, 2021 over September, 2020 with its cumulative index increasing by 35.0 % during April to September, 2021-22 over the corresponding period of previous year. Cement production went up by 10.8 % in September, 2021 over September, 2020 and its cumulative index increased by 37.7 % during April to September, 2021-22 over the corresponding period of previous year. Electricity generation increased by 0.3 % in September, 2021 over September, 2020. Its cumulative index increased by 12.7 % during April to September, 2021-22 over the corresponding period of previous year. According to Aditi Nayar, Chief Economist, ICRA, “With the base effect wearing off and copious rainfall dampening mining and construction activities, as well as demand for electricity, the core sector growth slid to 4.4% in September 2021, was in line with our expectations,” Lower core sector growth and the impact of semiconductor shortages on auto output are expected to dampen the September 2021 IIP growth to 3-5%, despite the pre-festive season inventory buildup suggested by the GST e-way bill data.