The output of the 8 infrastructure sectors grew highest in 13 months in may at 18.1 percent. The data showed broad based improvement in core sector growth benefitting from a low base, with the exception of coal, which continued to record a high double digit growth.
Other sectors which saw growth were cement- 26.3%, fertilisers 22.8%, electricity 22%, petroleum and refinery products 16.7%, steel 15%.
The improvement is because of the support mainly from government as the capex grew by 70.1 percent in april may 2022. The growth in cement and steel indicates pick up in construction sector.
The Union government has exhausted 14.3 percent of its 7.5 trillion capital expenditure budget for FY 23 in the first two months april may of the fiscal year.
As the core sectors output momentum was sustained, it would be a big positive for the economy. Reserve bank of India has retaies its growth projection of 7.2 percent for FY 23.
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