Overview

• India’s core sector growth decelerated to 0.7% in May, its slowest pace in nine months.
• The slowdown was led by declines in crude oil, natural gas and fertilizer output along with a 5.8% drop in electricity generation.
• Cement production increased by 9.2% and steel by 6.7% in May, supported further by modest gains in coal and refinery products.
• Excess monsoon rainfall in late May depressed electricity generation and some mining activities, deepening production challenges.
• Core sector cumulative growth for April–May fell to 0.8% from 6.9% a year earlier, signaling headwinds for GDP growth.