FX.co ★ India's Infrastructure Output Growth Sees Slight Decline in December

India's infrastructure output growth witnessed a moderate slowdown in December 2024, marking a dip from the previous month. Official data updated on January 31, 2025, indicated that the infrastructure output grew by 4.0% in December compared to the same month a year ago. This represents a deceleration from November's 4.3% growth, which was also measured on a year-over-year basis.

The infrastructure output data is a crucial indicator for India's economic health, reflecting the performance of key sectors such as coal, electricity, and cement. Despite the deceleration, the December figure still showcases a steady, albeit slower, expansion in these pivotal areas.

Analysts suggest that while the slight reduction in growth rate is not a major cause for concern, it does highlight the need to closely monitor infrastructural investments and policy impacts in the coming months. With infrastructure being a critical component of India's long-term economic goals, ensuring continued momentum remains a priority for policymakers.