Core sector growth rises to two-month high of 1.7% in April; steel, cement and power drive expansion

India's eight core infrastructure sectors recorded a two-month high growth of 1.7 per cent in April, supported by higher output in steel, cement and electricity, according to government data released on Wednesday, PTI reported.The core sector had expanded by 1 per cent in April last year, while growth stood at 1.2 per cent in March this year.However, output from coal, crude oil, natural gas, refinery products and fertiliser recorded negative growth during the month under review.Steel production grew 6.2 per cent during April, while cement output rose 9.4 per cent and electricity generation increased by 4.1 per cent.Commenting on the data, Megha Arora, Director - Economics at India Ratings & Research, said the April performance could support industrial activity in the coming months."April's improved core sector performance is expected to increase the upcoming industrial production growth to around 5 per cent," Arora said, PTI quoted.The eight core sectors together account for 40.27 per cent of the Index of Industrial Production (IIP)."Ind-Ra expects core sector recovery to continue with a growth forecast of around 3 per cent in May 2026 due to a low base and likely improved fertilizer production," she added.Rahul Agrawal, Senior Economist at ICRA Ltd, said the broader trend suggested pressure on several parts of the economy."As many as five of the eight sectors registered a contraction in output in the month, barring steel, cement, and electricity generation, suggesting that economic activity in some sectors was impacted by the West Asia crisis," Agrawal said.