According to the new financial reports, the growth in the infrastructure industries slowed down to 3.7% in the month of August mainly because of sharp drop in the production of petroleum refinery products. This has been the lowest growth rate in the core sector since the month of July in 2009.

The growth rate was at 6.4% in the time period of 2009 but it dropped down to around 4% in the same time period of this year. Analysts are expecting the drop in the growth rate in core sectors to pull back the Index of Industrial Production (IIP), which is expected to drop down to single digit level in the month of August.

The total six infrastructure industries hold 26.7% of the total IIP. This fall in the growth rate in core sector will definitely pull down the Index of Industrial Production.

Experts say this fall would be a big problem for infrastructure industry in the near future. 13.8% growth was seen in the industrial production in the month of July which was mainly led by 63% growth in the capital goods production.