The growth of eight core sectors slowed down to 2.6 per cent in August mainly due to contraction in steel output.
The expansion in eight infrastructure sectors, which contribute about 38 per cent to the overall industrial production, was 5.9 per cent in the same month last year.
The August output, however, was higher than the previous month when the core sectors had expanded by just 1.1 per cent.
According to the data released by the Commerce and Industry Ministry today, the steel output in the month under review declined to 5.9 per cent as against a positive growth of 9.4 per cent in August 2014.
Coal, cement and electricity output slowed down to 0.4 per cent, 5.4 per cent and 5.6 per cent respectively during the last month as compared to 13.2 per cent, 10 per cent and 12.9 per cent.
However crude oil, natural gas, refinery products and fertilisers recorded healthy growth.
In March and April this year, the eight industries witnessed contraction of 0.1 per cent and 0.4 per cent respectively.
However, in May and June the core sectors expanded by 4.4 per cent and 3 per cent respectively.
During the April-August period of the current fiscal, the core sectors’ output expanded by 2.2 per cent as against 5.6 per cent in the first five months of 2014-15.
The overall growth of eight core industries in the entire 2014-15 fiscal stood at 3.5 per cent as against 4.2 per cent in the previous fiscal.
Deloitte Economist Rishi Shah said the increase in cement production could possibly be on the back of some push to infrastructure projects especially in the roads sector.
“Going ahead, we are likely to see a few more months of tepid growth and a real turnaround crucially depends on how the infrastructure push shapes up especially after the recent easing of monetary policy,” Shah said.