India’s Economic Growth Slows in May as Key Sectors Weaken: ICRA
India’s economic momentum eased in May, with growth slowing to 6.5% year-on-year, down from 7.8% in April, according to data analyzed by ICRA. The rating agency attributed the deceleration to broad-based weakness across several high-frequency indicators, with only limited signs of recovery visible in June.
Of the 15 key indicators tracked by ICRA, 10 showed weaker performance, led by sharp declines in core sector output, electricity generation, and transportation activity.
The core sector, which accounts for crucial industries such as steel, cement, coal, and crude oil, grew just 0.7% in May, marking its slowest expansion in nine months. Four of the eight core industries registered contractions, signaling broad-based softness in industrial activity.
Electricity generation fell 5.8%, largely due to unseasonal and intense rainfall across several regions, which disrupted power demand and production patterns.