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India’s Infrastructure Output Growth Slows Sharply to 0.5% in April—Momentum Cools After Strong Start to 2025


Updated: May 20, 2025 17:29

Image Source: Indian Retailer
India’s infrastructure sector saw a significant deceleration in April 2025, with output rising just 0.5% year-on-year—the weakest pace in five months and a sharp drop from March’s 3.8% expansion. The latest government data signals a cooling in momentum after a robust start to the year, raising questions about the sustainability of the infrastructure boom.
 
Key Highlights:
  • Growth Slows to a Crawl: Infrastructure output grew only 0.5% in April 2025, compared to 3.8% in March and an average of 4.63% over the past two decades. This marks the slowest monthly growth since November 2024, reflecting a broad-based moderation across core sectors.
  • Core Sectors Under Pressure: The combined index tracks eight core industries—refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilizers—which together account for nearly 40% of India’s industrial output. While previous months saw robust gains in cement, steel, and electricity, April’s data suggests these gains have softened.
  • Historical Context: The slowdown follows a period of strong government and private sector investment, with the Union Budget 2025 allocating ₹1.5 lakh crore in long-term loans to states for infrastructure. Major projects like new airports and bridges have recently come online, but the latest figures indicate that the sector may be entering a consolidation phase.
  • Outlook: Despite the April dip, analysts expect infrastructure output to recover to around 3.8% by the end of the quarter, with a long-term trend of 3.5–3.7% annual growth projected for the coming years.
India’s infrastructure engine has hit a temporary speed bump, but with continued policy support and project execution, a rebound is anticipated later in 2025.
 
Sources: Trading Economics, Reuters, Business Line, Times of India, Equipment Rentals India

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