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Infrastructure Sector Expansion Hits 6-Month Low at 7.8%

The growth rate of India’s eight core sectors slowed to 7.8% in November, marking a six-month low, according to official data released on Friday. In October, the growth rate was 12.1%, while in November of the previous year, it stood at 5.7%. The decline in core sector growth for November was largely attributed to the contraction in the cement sector, which experienced a year-on-year decline of 3.6%, with only coal and refinery products showing sequential growth. Overall, from April to November, the core industries recorded a year-on-year growth of 8.6%, compared to 8.1% in the same period the previous fiscal year.

On a positive note, India’s fiscal deficit for April-November FY24 contracted to Rs 9.1 lakh crore, constituting 50% of the FY24 budget target. This is an improvement from the Rs 9.8 lakh crore fiscal deficit in April-November FY23, when it stood at 58.9% of the budget estimates. The government aims to limit the fiscal deficit for 2023-24 to Rs 17.86 lakh crore, equivalent to 5.9% of the GDP, as part of its fiscal consolidation strategy, with the eventual goal of bringing it under 4.5% of GDP by 2025-26.

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