In terms of infrastructure, the month of May proved to provide some relief. During the month of May, the growth rate of eight core industries improved slightly to 4.3 per cent. Earlier in April, the growth rate of eight basic industries had come down to a 6-month low.
so far back from a year ago
During the month of April, eight basic industries had grown at a rate of only 3.5 per cent, which was the lowest in the last 6 months. In this way, the growth rate of 4.3 per cent in May shows a decent improvement. However, the growth rate is still much lower than a year ago. According to official data, the growth rate of eight basic industries was 19.3 percent in May 2022.
the pace of improvement is slow
The government gave information about the figures for the month of May in an official release released on Friday. The data shows that the growth rate of basic industry has been slow, mainly due to the decrease in the production of crude oil, natural gas and electricity. The growth rate of eight basic industries has been less than 4 per cent during April-May in the current financial year, compared to 14.3 per cent in the same period a year ago. This means that the infrastructure sector is improving, but it is very slow.
growth in these industries
According to government data, the production of cement, fertiliser, steel, coal and refinery products has improved during May 2023 as compared to a year ago. During May 2023, coal production has increased by 7.2 percent on an annual basis. Similarly, during the month under review, production of fertilizers increased by 9.7 percent, production of steel by 9.2 percent, production of cement by 15.5 percent and production of petroleum products by 2.8 percent.
decline in their production
On the other hand, in the case of crude oil and natural gas, production has declined by 1.9 percent and 0.3 percent, respectively. During the month of May, the production of electricity has also declined by 0.3 percent on an annual basis. The contribution of these eight basic industries in the index of industrial production (IIP) of the country’s total industrial production is more than 40 percent.
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