Growth of eight key infrastructure sectors remained flat in October as expansion in output of petroleum refinery products, fertiliser and steel was offset by a contraction in coal and electricity production, according to official data released on Thursday.
India's eight key infrastructure sectors grew at a slower pace of 1.8 per cent in November against 5.8 per cent in the same month last year, amid a dip in production of crude oil, natural gas, refinery products, and electricity, according to official data released on Monday.
India offset the decline in exports to traditional destinations by sharply ramping up shipments to Jordan (18,086 per cent), Hong Kong (17,006 per cent), Spain (13,436 per cent), the Philippines (2,235 per cent), and Namibia (1,068 per cent) in H1FY26.
Of the 1.32 trillion capex target for FY26, State-run oil firms have already spent 1.07 trillion in the first 10 months.
India will restrict crude oil purchases from Russia as part of an agreement reached with the US in exchange for lower trade tariffs, sources said, adding imports will continue for now by refiners such as Nayara Energy, which have no other alternative source. US President Donald Trump announced overnight that the United States will cut the reciprocal tariff on imports of Indian goods to 18 per cent from 25 per cent under a broader bilateral understanding.
The fiscal tilt towards capex benefits companies in investment-related sectors like capital goods, defence equipment, engineering & construction and metal & mining. The planned cut in revenue expenditure will weigh on companies in consumption sectors like FMCG, consumer durables and retail.
'Crude oil prices are around $66-67 per barrel now but could fall to $55-60 if global disturbances ease.'
The growth in key sectors will have implications for the Index of Industrial Production as these eight segments account for about 41 per cent of the total factory output.
US sanctions against two of Russia's largest oil companies are expected to impact Reliance Industries' crude imports from Russia, while state-run refiners may continue purchases through intermediary traders for now.
Cooking oil is often discarded after being used for frying at home or in restaurants. However, a refinery of IndianOil has now won a certification to use the same oil to produce sustainable aviation fuel (SAF), the company chairman Arvinder Singh Sahney said.
The six infrastructure industries, which account for a quarter of the nation's industrial production, registered 2 per cent growth in October 2008.
The eight core industries -- fertilisers, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas -- have a combined weight of about 38 per cent in the Index of Industrial Production.
The six core infrastructure industries -- crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel --had registered a growth rate of 5.1 per cent in November 2007.
The growth of six infrastructure industries slowed to 2.5 per cent in September, pulled down by contraction in output of coal and petroleum refinery.
The six core sectors - crude oil, petroleum refinery products, coal, electricity, cement and finished steel - had expanded by 4.2 per cent in February 2010.
The six core sectors -- crude oil, petroleum refinery products, coal, electricity, cement and finished steel -- had expanded by 9.8 per cent in January, 2010.
The growth of six core infrastructure industries eased to 1.8 per cent in July, the lowest this fiscal, as petroleum refinery acted as a drag on the sector.
India's brittle energy security is inextricably linked to two opposing paradigms - fossil fuels, and the transition to green energy. The first powers the present; the second paves the way for Viksit Bharat in 2047.
During April-May 2008-09, the growth rate of these core industries declined to 3.5 per cent against 6.9 per cent during the same period last fiscal. According to official data released on Wednesday, the petroleum refinery products registered a poor growth of 0.1 per cent in May, compared to 14.9 per cent last year. Growth in electricity also declined to 2.0 per cent as against 9.3 per cent and cement sector registered a growth of 3.8 per cent compared to 9.9 per cent.
Poor performance of coal, petroleum refinery products and natural gas pulled down the core sector growth to 2.1 per cent in December, 2013 from 7.5 per cent in the same month a year ago.
Driven by coal and petroleum refinery, eight core sector industries registered eight-month high growth of 6.5 per cent in October, a trend that is in contrast to fall in country's overall economic growth in July-September period.
Reliance Industries Ltd has consistently remained compliant with international sanctions and is expected to adhere to upcoming measures on Russian oil, analysts said, estimating that oil sourced from Russia contributes just 2.1 per cent to its consolidated EBITDA. Reliance operates the world's largest single location refining complex, with more than half of the capacity exclusively dedicated for exports.
India's annual oil import bill could rise by $9-11 billion if the country is compelled to move away from Russian crude in response to US threats of additional tariffs or penalties on Indian exports, analysts said. India, the world's third-largest oil consumer and importer, has reaped significant benefits by swiftly substituting market-priced oil with discounted Russian crude following Western sanctions on Moscow after its invasion of Ukraine in February 2022.
The output of eight core sectors grew by 11.6 per cent in August, mainly due to an uptick in the production of cement, coal, and natural gas, official data showed on Thursday. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had contracted by 6.9 per cent in August 2020 due to the nationwide lockdown imposed to control the spread of COVID-19. The eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
The production of eight infrastructure sectors rose by 7.5 per cent in October on healthy performance by the segments of coal, natural gas, refinery products and cement, official data released on Tuesday showed. The output of eight core sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had contracted by 0.5 per cent in October 2020, according to the data released by the commerce and industry ministry. Core sectors' growth stood at 4.5 per cent in September this year.
Crude oil showed negative growth by one per cent in August from a positive 6.5 per cent in the same month last year. Growth in petroleum refinery products dropped to 2.5 from 8.2 per cent, while expansion in electricity generation was down to just 0.8 per cent from a healthy 9.2 per cent last year.
The eight core industries -- fertilisers, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas -- have a combined weight of about 38 per cent in the Index of Industrial Production.
Annual growth in the eight core sector industries more than doubled to seven-month high of 5.1 per cent in September on good production in coal, cement and petroleum refinery sectors.
India's key infrastructure industries posted a handsome growth of 4.4 per cent in August on the back of a surge in electricity generation, and production of crude oil and petroleum products.
The output of eight core industries increased 4.2 per cent in April, boosted by higher electricity, fertiliser and cement production.
The core industries that also include coal, electricity, cement, petroleum refinery products and finished steel, and carry 37.9 per cent weight in the Index of Industrial Production, had grown by 5.8 per cent in May last year.
India's infrastructure industries grew by a faster 8.7 per cent in February 2008, lending hopes of a revival in industrial production growth and in turn a higher rate of economic expansion.
The core infrastructure industries had expanded by 5.2 per cent in the previous month.
With natural gas and cement showing decline in production, the growth of eight core infrastructure industries slowed down to 5.3 per cent in May against 7.4 per cent a year ago.
India's key infrastructure industries posted a handsome growth of seven per cent in July on the back of a surge in electricity generation, and cement and coal production.
Core infrastructure industries of crude petroleum, petroleum refinery products, coal, electricity, cement and finished steel all registered a decline in growth.
Growth in six core infrastructure industries, which have a combined weight of 26.7 per cent in the Index of Industrial Production
Eight infrastructure industries grew by 3.5 per cent in August this year, down from 4.4 per cent expansion witnessed in the same month last year.
The slowdown comes a month after the six core infrastructure industries grew by 7.4 per cent in March.
According to industry experts, the consumption of petroleum products in the month of April was only 30-40 per cent of what it had been prior to the lockdown. Due to this, refineries were forced to bring down their capacity too.
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