India’s eight key sectors rose 4.3% in March from 6% in February, the Commerce Ministry said on April 29.
According to the latest data, only three of the top eight sectors saw faster output growth rates in March, compared to six in February. These three sectors were fertilizers, cement and electricity.
While fertilizer output increased 15.3 percent year on year in March, cement and electricity rose 8.8 percent and 4.9 percent, respectively.
In February, fertilizer production contracted 1.4%. Cement and electricity production increased by 5% and 4.5%, respectively.
Laggards included coal and crude oil. Coal production fell 0.1% in March compared to the same period last year. Crude oil production, however, fell 3.4% on an annualized basis.
For FY22 overall, the top eight segments grew 10.4%. In FY21 its production fell by 6.4%.
The slowdown in central sector growth in March is likely to translate into lower industrial growth as measured by the Industrial Production Index (IPI).
The eight basic industries together account for 40.3% of the total weight of the IIP. Therefore, the performance of the core sector is a kind of leading indicator of IIP growth.
Data released on April 12 showed that IIP growth increased to 1.7% in February from 1.5% in January.
IIP data for March is expected to be released on May 12.