The eight core infrastructure industries, a key gauge of economic activity, saw growth slow to 5.2 per cent in March compared with 7.1 per cent in February.

The slowdown was attributed to five sectors — coal, crude oil, natural gas, refinery products and fertiliser — which witnessed either a contraction or slower growth compared with February.

Despite the March dip, cumulative growth for 2023-24 remained at 7.5 per cent, marginally lower than the 7.8 per cent recorded in the previous year.

“Core sector growth eased as the leap year effect faded. Similar to the trend displayed by the core sector, IIP growth is likely to moderate somewhat in March 2024, as the leap year effect fades. We project the IIP growth at 3.5-5 per cent in March 2024,” Aditi Nayar, chief economist, Icra, said.