Why in News ?

Eight core infrastructure sectors dropped by 9.6 per cent in July due to decline mostly in production of steel, refinery products and cement. Eight core industries contracts Implication shows that stagnation due to COVID 19. 

What are the core Industries ?

• Core industries are the main or the key industries of any country and acts as a backbone for all other industries.
• The eight core industries : Coal, Crude oil, Natural gas, Refinery products, Fertilisers, Steel, Cement and Electricity.
• Weight of Core Industries in IIP

• Index of Industrial Production (IIP)
  • Growth rates in different industry groups of the economy in a particular period of time.
  • The IIP index published Central Statistical Organisation (CSO) on a monthly basis.
  • 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.
  • Index of eight core sector industries, which form 40% of the weight of items included in the broader Index of Industrial Production (IIP).
• Index of Eight Core Industries (ICI)
  • The ICI is a production volume index prepared and released
    • Office of the Economic Adviser (OEA)
    • Department for Promotion of Industry and Internal Trade (DPIIT)
    • Ministry of Commerce & Industry, GOI\
  • To provide an advance indication on the production performance of the industries which are of core nature before the release of the IIP and released 12 days before the IIP.

About News Eight core industries contracts Implication

• Fertiliser output grew by 6.9 per cent.
• All seven sectors coal, crude oil, natural gas, refinery products, steel, cement and electricity recorded negative growth in July.

Source : Indian Express

Topic 

Prelims : IIP. ICI, Core Industry

GS III : Indian Economy

Current Affairs Compilation : 1 September 2020