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According to official data released on Tuesday, infrastructure industries grew 8.4% year-on-year in April, a six-month high.
The core sector saw an exceptionally high growth rate of 62.6% in April 2021, mainly due to the low base effect as Covid disrupted economic activity in the month before.
Barring crude oil and steel, all other infrastructure industries registered positive annual growth in April 2022.
Crude oil registered an annual decline of 0.9% despite a low base (contracted 2.1% in April 2021). Crude oil production has been weak for quite some time and has been in contraction for 53 months.
“This means the country’s dependence on global crude will be even higher, which is on the boil for imported inflation and its associated consequences for the economy,” said Sunil Kumar Sinha, economist at India Ratings.
Growth in the core sector in April was mainly driven by a record annual growth of 28.8% in coal production. Other sectors that saw higher growth as per the latest figures were electricity (10.7%), refinery products (9.2%) and fertilizers (8.7%).
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