India’s infrastructure output grew 3.9 per cent in July, marginally higher than annual growth of 3.6 per cent in June, as crude oil and refinery output grew in double-digits, government data showed on Friday.

Infrastructure growth has been slowing from 9.5 per cent in January, but
analysts expect growth to pick up over the next few months.


"Infrastructure industries witnessed low growth in July as growth was subdued on
account of low growth of electricity, the largest sub-component within the
index," Aditi Nayar, an economist at ICRA rating agency, said.


"The base effect combined with the impact of monsoon rainfall resulted in
marginal contraction in cement and coal output," she said.


"However, I still expect the current financial year to end with a slightly
better number than the 5.5 percent growth in the core sector output in 2009/10."
Cement and finished steel output contracted because of heavy rains in mining
area and a slowdown in construction during the monsoon.


During April-July, infrastructure output rose 4.5 per cent compared with four per cent a year ago.

The infrastructure sector accounts for 26.7 per cent of India’s industrial 
output.


The country expects to invest about US$500bn in the infrastructure, mainly in
power, telecommunication, roads, railways and oil pipelines, in the five-year
period ending March 2012.