India’s infrastructure output grew by 4.3% in May 2023, remaining unchanged from April. The growth in infrastructure sector was fueled by strong government capital expenditure, particularly benefiting sectors like cement and steel. However, slower global growth had a negative impact on the overall gains.
The Index of Eight Core Industries increased by 3.5% in May, marking three consecutive months of growth.
The article suggests that while the infrastructure sector in India is still expanding, the pace has slowed compared to previous months.
Various factors, such as the ongoing war in Ukraine and rising inflation, likely contribute to this slower growth. The Index of Eight Core Industries comprises coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity.
The Union Budget 2022-23 has allocated INR 10 lakh crore (US$130 billion) for infrastructure development. The infrastructure sector is projected to achieve a compound annual growth rate (CAGR) of 8.2% by 2027.
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