Infra sectors grow 12%, fiscal deficit at a 3rd of FY24 target

Robust core sector growth to prop up IIP for August; industrial recovery seen broad-based

- Gireesh Chandra Prasad & Rhik Kundu

Output of eight infrastructure industries grew 12.1% in August, its fastest pace in 14 months, aided by double-digit growth in coal, gas, refinery products, cement, steel and electricity sectors, commerce ministry data showed.

Experts said this is expected to help maintain robust industrial output in August.

The eight core industries make up two-fifths of the weight of the items included in the Index of Industrial Production (IIP). Overall industrial output had grown 4.8% this fiscal till July.

Data separately released by the Controller General of Accounts (CGA) on Friday showed that India's fiscal deficit in the first five months of FY24 stood at ₹6.43 trillion, or 36% of the annual estimate of 17.87 trillion.

In the same period of FY23, the fiscal deficit stood at 5.42 trillion, or 32.6% of the year's target of 16.61 trillion. Experts said the fiscal deficit target for this year is achievable.