Index of Eight Core Industries

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    The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade released the Index of Eight Core Industries for the Month of March, 2021.

    Major Highlights

    • The combined Index of Eight Core Industries stood at 143.1 in March, 2021, which increased by 6.8 (provisional) per cent as compared to the Index of March, 2020.
    • The cumulative growth during April to March, 2020-21 has been (-) 7.0%.
    • Summary of the Index of Eight Core Industries
      • Coal: Coal production (weight: 10.33 per cent) declined by 21.9 per cent in March, 2021 over March, 2020.
        • Its cumulative index declined by 4.8 per cent during April to March, 2020-21 over the corresponding period of the previous year.
      • Crude Oil: The Crude Oil production (weight: 8.98 per cent) declined by 3.1 per cent in March, 2021 over March, 2020.
        • Its cumulative index declined by 5.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
      • Natural Gas: The Natural Gas production (weight: 6.88 per cent) increased by 12.3 per cent in March, 2021 over March, 2020.
        • Its cumulative index declined by 8.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
      • Petroleum Refinery Products: The Petroleum Refinery production (weight: 28.04 per cent) declined by 0.7 per cent in March, 2021 over March, 2020.
        • Its cumulative index declined by 11.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
      • Fertilizers: The fertilizers production (weight: 2.63 per cent) declined by 5.0 per cent in March, 2021 over March, 2020.
        • Its cumulative index increased by 1.8 per cent during April to March, 2020-21 over the corresponding period of previous year.
      • Steel: The steel production (weight: 17.92 per cent) increased by 23.0 per cent in March, 2021 over March, 2020.
        • Its cumulative index declined by 9.5 per cent during April to March, 2020-21 over the corresponding period of previous year.
      • Cement: The cement production (weight: 5.37 per cent) increased by 32.5 per cent in March, 2021 over March, 2020.
        • Its cumulative index declined by 11.9 per cent during April to March, 2020-21 over the corresponding period of previous year.
      • Electricity: The electricity generation (weight: 19.85 per cent) increased by 21.6 per cent in March, 2021 over March, 2020.
        • Its cumulative index declined by 0.6 per cent during April to March, 2020-21 over the corresponding period of previous year.

    About  Index of Eight Core Industries

    • The Index of Eight Core Industries captures the output of coal, crude oil, natural gas, steel, cement, fertilisers, electricity, and refinery products. 
      • These core industries are considered as main or key industries of the economy and serve as the backbone of all other industries.
    • The index has a 40.27% weight in the Index of Industrial Production (IIP), suggesting a sharp contraction in that indicator.
    • The base year of the index has been revised to 2011-12 from 2004-05 in alignment with the new series of IIP.

    Index of Industrial Production

    • The Index of Industrial Production(IIP) is  an index that tracks manufacturing activity in different sectors of an economy
    • All India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period.
    • It is compiled and published monthly by the Central Statistics Office (CSO).

    Department for Promotion of Industry and Internal Trade (DPIIT)

    • The Department of Industrial Policy & Promotion (DIPP) was renamed as the Department for Promotion of Industry and Internal Trade (DPIIT) in 2019 after bringing internal trade in ambit.
    • Administered by the Ministry of Commerce and Industry. 
    • It is a nodal Government agency with a responsibility to formulate and implement growth strategies for the Industrial Sector along with other Socio-Economic objectives and national priorities.

    Source: BS