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The output of eight key infrastructure sectors expanded by 2 per cent in September, though the growth was slower than the 9.5 per cent registered in the same month last year, according to official data released on Wednesday.
The output of these sectors had contracted by 1.6 per cent in August.
Out of the eight key sectors, three -- crude oil, natural gas and electricity -- recorded negative growth in September.
Growth rate of the production of coal, fertiliser, and steel has moderated to 2.6 per cent, 1.9 per cent and 1.5 per cent, respectively, as against 16 per cent, 4.2 per cent and 14.8 per cent in September last year.
However, cement and refinery products output rose to 7.1 per cent and 5.8 per cent, respectively, in the month under review.
The growth of core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 4.2 per cent during April-September this fiscal. It was 8.2 per cent in the same period last fiscal.
The eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP) which measures overall industrial growth.
Commenting on the data, ICRA Ltd Chief Economist Aditi Nayar said that the easing of the disruption related to rainfall on sectors like mining and electricity contributed to the turnaround in the core sector's performance in September from the mild contraction in August.
The growth, she said, in cement production improved to a six-month high.
"ICRA projects the IIP to grow by about 3-5 per cent in September 2024, amid a narrower contraction in electricity and mining output, as well as a favourable base, and a sharp uptick in the growth in GST e-way bills, supported by pre-festive stocking," Nayar said.