index-of-eight-core-industries-for-february-2020

Context:

The output of eight core sectors of the Indian industry – coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity stood at 132.9 in February 2020, which is a jump by 5.5% if we compare to the index of February,2019.

 

Index of Core Industries

Objective

  1. The objective of the Index of Core Industries is to provide an advance indication on production performance of industries of core nature before the release of Index of Industrial Production (IIP) by the Central Statistics Office. 

Releasing Organisation

  1. It is released by the  Office of Economic Advisor, which comes under the Ministry of Commerce and Industry.

Base Year

  1. Its base Year is 2011-12.

Constituents

  1. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

Core sectors (In decreasing order of Weight)

Sectors

Weight

Refinery Products

28.0376

Electricity

19.8530

Steel

17.9166

Coal

10.3335

Crude Oil

8.9833

Natural Gas

6.8768

Cement

5.3720

Fertilizers

2.6276

Index of Industrial Production

About

  • IIP is an index that shows the growth of the manufacturing industry in different sectors of the economy.
    • The IIP reviews the industrial production for the period of a month.

Base Year

  • The base year for IIP is 2011-2012.

Constituents

  • The constituents of IIP fall in three broad sectors             

                Source:Indian-economy.net

  • The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

Compiling Agency

  • It is compiled and published by the Central Statistical Organization (CSO), which falls under the purview of the Ministry of Statistics and Programme Implementation.

Utility of IIP Data

  • The IIP data is used by the Ministry of Finance, the Reserve Bank of India (RBI), private firms and analysts, for the purpose of analysis.
    • It also finds utility in compilation of Gross Value Added (GVA) of the manufacturing sector in the Gross Domestic Product (GDP).

Source: PIB

Image Source: Business Today