Core sector growth drops to nine-month low in May

Contraction can be due to less demand during peak summer

- FE BUREAU New Delhi, June 20

The growth in outputs of India's core infrastructure industries fell to an eight-month low of 0.7% in May as production of electricity and fertilizers contracted sharply during the month.

The electricity sector, which has the highest weight of 19.85% in the Index of Eight Core Industries (ICI), saw output fall by 5.8% in May compared to the same month last year. One reason for the contraction could be lesser demand during peak summer months as temperatures remained lower than the levels seen in May 2024.