Various Indian media outlets are reporting that growth in eight core infrastructure sectors slipped to 2.7% in July, down from 7.3% in June. This compares with growth of 5.3% in July 2013. However, growth in the cement sector bucked the trend, coming in at 16.5% in July versus 13.6% in June. Coal production was likewise up, at 6.2%, while crude oil, natural gas, fertilizers, petroleum and refinery products and steel products all contracted.
Some reports suggest these figures show that recovery in India will be harder than imagined. The impact of the slowdown in core sector growth may well be felt on the index of industrial production (IIP), figures for which have not yet been released.
Yesterday we reported that GDP for the April – June quarter was up 5.7% y/y and construction grew 4.8%.
Edited from various sources by Katherine Guenioui
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