India’s Core Sectors

    0
    504

    In Context

    • The growth of eight core infrastructure sectors rose by 12.7% in June against 9.4% in the year-ago period.

    What are the Core Sector Industries?

    • These core industries are considered as main or key industries of the economy and serve as the backbone of all other industries
    • The eight-core sector industries include coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity
    • The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
    • The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

    Index of Industrial Production (IIP)

    • It is an index that tracks manufacturing activity in different sectors of an economy.
    • It is a composite indicator that measures the growth rate of industry groups classified under:
      • Broad sectors, namely, Mining, Manufacturing, and Electricity.
      • Use-based sectors, namely Basic Goods, Capital Goods, and Intermediate Goods.
    • It is the only measure of the physical volume of production.
    • It is compiled and published monthly by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation.
    • The base year of the index has been revised to 2011-12 from 2004-05 in alignment with the new series of IIP.

    Significance of IIP

    • Shows the growth rates in different industry groups of the economy in a stipulated period of time.
    • The Index is used by government agencies and departments such as the Finance Ministry and the RBI.
    • Useful for the projection of advance GDP estimates.

    Source: ET