NEW DELHI (Reuters) -India’s infrastructure output in November rose at the slowest pace in six months at 7.8% year-on-year, as a delayed festival season reduced working days leading to a drop in cement and crude oil production.
It was the slowest growth in infrastructure output, comprising eight sectors also including coal and electricity, since the 5.2% recorded in May 2023.
Diwali, one of India’s main festivals, is usually celebrated in October, but fell later this year, in November.
Cement output dropped 3.6% year on year in November while crude oil production fell 0.4%.
Electricity generation rose 5.6% in the month, coal production was up 10.9% and the steel sector expanded 9.1% year on year, the data showed. Production of refinery products increased 12.4%.
“Given the larger number of factory holidays, we anticipate a modest 2-4% rise in the Index of Industrial Production (IIP) in November 2023,” said Aditi Nayar, an economist at ICRA.
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In the first eight months of the financial year that started on April 1, infrastructure output, which accounts for nearly 40% of industrial production, rose 8.6% year on year, the data showed.
(Reporting by Nikunj Ohri and Shivangi Acharya; editing by Jane Merriman, Kirsten Donovan)
