The main infrastructure sectors of the nation continued to grow in May, but the demand for crude oil, fertilizers, and cement fell as a result of base effect and slowing demand.
Index of Industrial Production (may 2024)
For the fourth consecutive month, growth has stayed above 6 per cent.
Approximately 41 per cent of the index of industrial production (IIP) is made up of these sectors.
The top 8 core industries, which include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity, expanded by 6.3 per cent annually in May, according to data released by the ministry of commerce and industry on Friday. This growth was slightly slower than the 6.7 per cent expansion seen in April but higher than the 5.2 per cent growth noted in May 2023.
Petroleum production
Production at petroleum refineries rose by 0.5 per cent in May 2024 compared to the same month the previous year.
Coal and steel production
Steel production increased by 7.6 per cent in May, but coal production also saw double-digit growth in May, rising by 10.2 per cent.
Electricity generation
May saw a strong 12.8 per cent increase in electricity generation compared to the same month the previous year.
Natural gas
Additionally, the nation's production of natural gas rose by 7.5 per cent in May 2024 compared to May 2023, facilitating the use of more renewable fuel in home kitchens and the transportation sector.
However, in May, the output of fertilizer fell by 1.7 per cent.
Index of Industrial Production (may 2023)
In May of last year, the electricity sector grew by 0.8 per cent, but this year it grew by 12.8 per cent, faster than it did in April (10.2 per cent). May's 7.6 per cent growth in the steel sector was less than May 2023's 12 per cent growth and April 2023's 8.8 per cent growth. Cement fell by 0.8 per cent, fertilizers by 1.7 per cent, and the crude oil industry by 1.1 per cent.
