Image Source: The Financial Express
India’s infrastructure sector delivered steady growth in the fiscal year 2024-25, with government data showing a 4.4% annual increase in output. The latest figures for March 2025 also reflect a 3.8% year-on-year rise, highlighting ongoing momentum in the country’s core industries despite a moderation from last year’s pace.
Key Highlights:
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Infrastructure output, which tracks eight core sectors—refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilizers—rose 4.4% in FY25, though this marks a slowdown from the robust 7.6% growth recorded in the previous fiscal year.
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March 2025 saw a 3.8% year-on-year increase in infrastructure output, up from a revised 3.4% in February, marking the seventh consecutive month of positive growth.
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The March uptick was driven by strong performances in cement (11.6%), fertilizers (8.8%), steel (7.1%), and electricity (6.2%). However, output declined for crude oil (-1.9%) and natural gas (-12.7%), reflecting ongoing challenges in the energy sector.
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Infrastructure accounts for nearly 40% of India’s industrial production, making it a critical barometer for the broader economy.
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The government’s continued focus on infrastructure investment—reflected in significant budget allocations and policy support—is expected to sustain growth in the sector, with an eye on long-term economic resilience and the ‘Viksit Bharat’ vision.
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Analysts note that while growth has moderated compared to last year, the consistent expansion signals underlying strength in core industries and ongoing public and private sector investment.
Source: TradingView, PIB, Trading Economics, EY India, Economic Times
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