India infrastructure growth slows to 2.3 percent in February
India's infrastructure output grew by 2.3% in February, marking its slowest pace in three months. Declines in oil and gas production weighed on the index.
India saw its infrastructure output growth decelerate to a three-month low in February, as activity in key energy sectors faltered. According to government data released on Friday, the index of eight core industries expanded by 2.3% year-on-year, down from a revised 4.7% in January. This represents the slowest pace of expansion since November 2025, when growth stood at 2.1%.
The slowdown was primarily driven by a sharp reduction in energy-related production. Electricity generation growth plummeted to 0.5% from 5.2% in the previous month. Crude oil production contracted by 5.2%, while natural gas output fell by 5%. Additionally, refinery products saw a 1% decline, a reversal from the stagnant growth reported in January.
Other sectors also showed signs of moderation. Steel production grew by 7.2%, compared to 11.5% in January, and cement output rose by 9.3%, down from 11.3%. Coal production increased by 2.3%, while fertiliser output saw a 3.4% rise. For the cumulative period from April to February, the infrastructure sector grew by 2.9%, significantly lower than the 4.4% growth recorded during the same timeframe in the previous year.
Aditi Nayar, the chief economist at ICRA, noted that the underlying weakness in the sector preceded recent international developments.
Infrastructure output has slowed even before the start of the West Asia crisis due to broad-based weakness.
The longer the crisis persists, the downside for Indias growth increases, despite resilient domestic demand.
