Image Source : StudyiQ
India’s infrastructure output grew just 1.3% year-on-year in the April–June quarter of FY26, marking a sharp deceleration from 6.2% growth in the same period last year. The slowdown reflects persistent weakness across key industrial inputs and subdued capital formation.
Key Highlights:
- June infrastructure output rose 1.7% y/y, up from 1.2% in May
- This marks the third consecutive month of sub-2% growth across eight core sectors
- Crude oil and natural gas output declined 1.2% and 2.8% respectively in June
- Cement and steel production rose 9.2% and 9.3%, supporting construction momentum
- Electricity generation fell 2.8%, while coal output dropped 6.8%
Economic Implications:
- Core sectors contribute 40% to India’s Index of Industrial Production
- Weak infrastructure growth may weigh on Q1 GDP and delay recovery in manufacturing
- Economists cite uneven capital formation and global demand challenges as key drags
Sources: Moneycontrol, Reuters, Trading Economics, Financial Express, Yahoo Finance India
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