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Regular-article-logo Thursday, 12 February 2026

Core growth picks up

The core infrastructure sector expanded at its fastest pace in seven months at 6.7 per cent in June from a year ago because of a better performance by cement, refinery and coal segments and a favourable base effect, government data showed.

Our Special Correspondent Published 01.08.18, 12:00 AM

New Delhi: The core infrastructure sector expanded at its fastest pace in seven months at 6.7 per cent in June from a year ago because of a better performance by cement, refinery and coal segments and a favourable base effect, government data showed.

The eight sectors, which include fertilisers, steel, natural gas, electricity and crude oil, had expanded 1 per cent in June last year. The previous high rate of growth was recorded in November 2017 at 6.9 per cent. The growth rate in May was 4.3 per cent.

Aditi Nayar, principal economist with Icra, said, "a healthy pickup in the pace of growth of refinery products and steel, as well as a favourable base effect, contributed to the sequential improvement in core sector expansion to a seven-month high 6.7 per cent in June 2018" .

"Disaggregated data continued to provide mixed signals. While coal, cement and refinery products recorded double-digit growth, the sharp slowdown in the growth of fertilisers and the deepening contraction in crude oil and natural gas in June 2018 relative to the previous month were disappointing," she said.

Commerce and industry ministry data show the growth in cement was 13.2 per cent, refinery products, 12 per cent, and coal, 11.5 per cent. Crude oil and natural gas registered a negative growth of 3.4 per cent and 2.7 per cent, respectively.

The expansion in electricity generation was 4 per cent in June compared with 2.2 per cent at year ago.

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