India’s core infrastructure output expands 4.8% year-on-year in August, extending growth under the country’s revised data series. The reading follows a revised 5% increase in July and reflects the third release based on the new 2022-23 base year.
Revised core sector series shapes August reading
As reported by Reuters, the August data is released under a revised series that uses 2022-23 as the base year for measuring infrastructure output.
The new series replaces the earlier 2011-12 base year in June and expands the core sector basket to nine industries from eight, adding iron ore to the index.
Government data showed infrastructure output had grown a revised 5% year-on-year in July before easing to 4.8% in August.
Signal for India’s industrial activity
The infrastructure index is closely watched as an indicator of industrial momentum because it tracks key sectors that feed into broader economic activity.
The latest reading suggests growth in India’s core industries remains positive in August, although slightly below the revised pace recorded a month earlier.
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Highlights
- India’s infrastructure output grew 4.8% year-on-year in August, easing from a revised 5% growth rate in July.
- The new core sector index, effective June, uses 2022-23 as the base year and expands its coverage from eight to nine industries with the inclusion of iron ore.
