Core sector output growth slowed to 4.6% in January

Core Sector in India

The core sector in India comprises eight key industries:

1Coal,

2Crude oil,

3Natural Gas,

4Refinery Products,

5Fertilizers,

6Steel,

7Cement, and

8Electricity.

The growth rate of the core sector is a crucial indicator of the overall health of the Indian economy.

A strong growth rate in the core sector often signals a positive economic outlook.

Index of Eight Core Industries (ICI):

The core sector growth is calculated by combining the growth rates of these individual industries, using their respective weights in the overall Index of Core Industries (ICI)

The Index of Eight Core Industries (ICI) is prepared every month and released by the Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce & Industry.

The current weightage of eight core industries is Petroleum Refinery Products (28.04%)> Electricity (19.85%) > Steel (17.92%) > Coal (10.33%) > Crude Oil (8.98%) > Natural Gas (6.88%) > Cement (5.37%) > Fertiliser (2.63%).

The base year in the current series of ICI is 2011-12.

Index of Industrial Production

The Index of Industrial Production (IIP) is an index that shows the growth rates in different industry groups of the economy in a fixed period of time.

It is compiled and published monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation.

IIP is a composite indicator that measures the growth rate of industry groups classified under broad sectors, namely, Mining, Manufacturing, and Electricity.

Base Year for IIP is 2011-2012.

The eight core industries of India represent about 40% of the weight of items that are included in the IIP.