NEW DELHI: India’s eight infrastructure sectors grew 16.81 per cent year-on-year in May due to a low base.
But on a sequential basis, output contracted by 3.75 per cent due to the impact of the lockdowns imposed to contain the second wave of Covid-19.
The eight sectors—coal, steel, cement, fertilizers, electricity, natural gas, refinery products, and crude oil—comprise two-fifths of industrial output.
In April, the core sector had grown a massive 60.9 per cent, again due to an extremely low base.
Compared to this, in May last year, a contraction of 21.4 per cent was recorded driven by the nationwide lockdown imposed to curb the spread of the coronavirus, bringing a complete halt to economic activities including factory production.
Data released by the Commerce and Industry on Wednesday showed that barring fertilizers and crude oil, other sectors registered positive growth in May compared to the same month a year ago.
The production of natural gas, refinery products, steel, cement, and electricity jumped by 20.1 per cent, 15.3 per cent, 59.3 per cent, 7.9 per cent, and 7.3 per cent respectively in May.
Coal output grew at a modest 6.9 per cent during the month and, despite the low base, crude oil and fertilizer output contracted.
The fertilizer sector entered a contractionary phase beginning February this year.
On a sequential basis, steel, refinery products, cement, electricity and crude oil witnessed a contraction due to the second wave lockdowns.
“Even though construction activities were allowed amidst the state restrictions, the cement sector saw the largest sequential moderation in May 2021 (17.6), as well as the deepest pace of contraction relative to May 2019 (15.2%),” said Aditi Nayar, chief economist, ICRA.