By Shivangi Acharya
NEW DELHI (Reuters) – India’s infrastructure output expanded 7.8% year-on-year in January, its fastest pace in four months, driven by a surge in fertiliser, coal and electricity output, government data showed on Tuesday.
Seven out of the eight sectors posted year-on-year output growth in January, according to the data. Infrastructure output last grew faster at 7.9% year-on-year in September 2022.
Infrastructure output, which comprises eight sectors including coal and electricity accounting for nearly 40% of industrial output, rose 7.9% in the April-January period, according to the data.
Growth in fertiliser output was at 17.9% in January, compared with a contraction of 2% in the corresponding period last year, the data showed.
“This growth should be interpreted as providing supplies mainly for non-crops as well as replenishing inventory,” Bank of Baroda chief economist Madan Sabnavis said.
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Traction in sectors such as roads, railways and metals is a good sign for the economy on the investment front, Sabnavis added.
(Reporting by Shivangi Acharya; Editing by Sudipto Ganguly and Shounak Dasgupta)