The output of eight core infrastructure sectors expanded at a four-month high of 7.8 per cent in January 2023 on a better show by coal, fertiliser, steel and electricity segments, according to official data released on Tuesday.

The output of core sectors had increased by 4 per cent in January 2022 and by 7 per cent in December 2022. Barring crude, all eight segments posted an increase in production. Crude oil output contracted by 1.1 per cent in January.

Madan Sabnavis, chief economist at Bank of Baroda, said: “Core sector growth, which reflects the performance of the infra-based industries that have a weightage of around 40 per cent in the IIP, grew 7.8 per cent in January compared with 4 per cent last year. Seven of the eight industries witnessed positive growth numbers. The IIP growth can be expected at 5-6per cent for January.”

Data showed that steel and cement grew 6.2 per cent and 4.2 per cent, respectively, with infra activity taking off largely due to the Centre. With roads, railways and the metals segment witnessing traction this is a good sign for the economy on the investment front.

The growth in fertilisers was 17.9 per cent which comes over the negative growth of 2 per cent last year.