Core Sector Industries, Components to calculate Index Of 8 Core Industries

Context: Production in India’s eight core infrastructure sectors remained largely dampened by the impact of a slowdown in state spending on public works.

Core Sector Industries

• In India, there are eight core sectors comprising coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity.
• The performance of this core sector is viewed as a crucial indicator of a nation’s industrial and economic health.
• These eight core industries constitute 27% of the total index of industrial production (IIP).

Index Of Eight Core Industries (ICI)

• It is prepared by the Office of the Economic Advisor, Ministry of Commerce and Industry and is published monthly, with the base year being 2011-12.
• Components to calculate the ICI:
  • Coal: Coal production, excluding Coking coal.
  • Electricity: Electricity generation from thermal, nuclear, and hydro sources, and imports from Bhutan.
  • Crude Oil: Total crude oil production.
  • Cement: Production in both large plants and mini plants.
  • Natural Gas: Total production of natural gas.
  • Steel: Production of alloy and non-alloy steel only.
  • Refinery Products: Total refinery production.
  • Fertiliser: Production of urea, ammonium sulphate, calcium ammonium nitrate, complex grade fertiliser, single superphosphate, among others.
• Weightage of different sectors in the Index:

• Highest Weightage: Refinery products
• Lowest Weightage: Fertilisers

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