India's infrastructure sector growth improves MoM

Combined output of India's new-look infrastructure sector increased in May from last month despite disappointing performance of Coal, Natural Gas and Cement sub-segments. The index of eight core sector industries, having a combined weight of 37.90% in the Index of Industrial Production (IIP), grew by 5.3% compared to 4.6% in April. The infrastructure sector growth stood at 7.4% in May 2010. During April-May 2011-12, the eight core sector industries registered a growth of 4.9% as against 7.9% during the corresponding period of the previous financial year. The overall index level was at 142.45 in May as against 135.26 in the same month last year. The index stood at 137.88 in April and 154.92 in March.



Electricity generation registered a growth of 10.3% in May 2011 compared to a growth of 6.4% in May 2010. Crude Oil production registered a growth of 9.7 % in May 2011 versus a growth of 5.8% in May 2010. Fertilizer production registered a growth of 7.3% in May 2011 compared to a drop of 6.7% in May 2010. Steel production registered a growth of 6.1% in May 2011 compared to 9.0% in May 2010.

Petroleum refinery production registered a growth of 4.5% in May 2011 compared to a growth of 7.7% in May 2010. Natural Gas production shrank by 9.6% in May 2011 compared to growth of 34.4% in May 2010. Cement production declined by 2.3% in May 2011 compared to 8.6% in May 2010. Coal production registered a growth of 1.1% in May 2011 compared to growth of 0.3% in May 2010.