INDEX OF EIGHT CORE INDUSTRIES

Why in News?

  • The Index of Eight Core Industries is a provisional index which is released every month.
  • It is calculated by using Laspeyre’s formula of weighted arithmetic mean of quantity relatives. It measures collective and individual performance of production in selected eight core industries viz. Natural Gas, Coal, Crude Oil, Fertilizers, Petroleum Refinery Products, Steel, Cement and Electricity.

Highlights:

The combined Index of Eight Core Industries stood at 145.0 in March, 2019, which was 4.7 per cent higher as compared to the index of March, 2018. Its cumulative growth during April to March, 2018-19 was 4.3 percent.

Coal:

Coal production (weight: 10.33per cent) increased by 9.1 per cent in March, 2019 over March, 2018. Its cumulative index increased by 7.3 percent during April to March, 2018-19over corresponding period of the previous year.

Crude Oil:

Crude Oil production (weight: 8.98per cent) declined by 6.2 per cent in March, 2019 over March, 2018. Its cumulative index declined by 4.1 percent during April to March, 2018-19 over the corresponding period of previous year.

Natural Gas:

The Natural Gas production (weight: 6.88per cent) increased by 1.4 per cent in March, 2019 over March, 2018. Its cumulative index increased by 0.8 percent during April to March, 2018-19 over the corresponding period of previous year.

Refinery Products:

Petroleum Refinery production (weight: 28.04 percent) increased by 4.3 percent in March, 2019 over March, 2018. Its cumulative index increased by 3.1 percent during April to March, 2018-19 over the corresponding period of previous year.

Fertilizers:

Fertilizers production (weight: 2.63 per cent) increased by 4.3 percent in March, 2019 over March, 2018. Its cumulative index increased by 0.3 per cent during April to March, 2018-19 over the corresponding period of previous year.

Steel:

Steel production (weight: 17.92 percent)increasedby 6.7 per cent in March, 2019 over March, 2018. Its cumulative index increased by 4.7 percent during April to March, 2018-19 over the corresponding period of previous year.

Cement:

• Cement production (weight: 5.37 percent) increased by 15.7 per cent in March, 2019 over March, 2018. Its cumulative index increased by 13.3 percent during April to March, 2018-19 over the corresponding period of previous year.

Electricity:

• Electricity generation (weight: 19.85 percent) increased by 1.4 percent in March, 2019 over March, 2018. Its cumulative index increased by5.1 percent during April to March, 2018-19over the corresponding period of previous year.

Index of Industrial Production:

    • The Index of Industrial Production (IIP) is an index that details out the growth of various sectors in an economy such as mining, electricity and manufacturing.
    • The all India 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 with respect to that in a chosen base period.
    • It is compiled and published monthly by the Central Statistical Organisation (CSO) six weeks after the reference month ends.
    • The base year for IIP is 2011-12.

In India, there are eight core sectors comprising of
✓ Refinery products (28.04%)

✓ Electricity (19.85%)

✓ Steel (17.92%)
✓ Coal (10.33%)

✓ Crude oil (8.98%)

✓ Natural gas (6.88%)

✓ Cement (5.37%)

✓ Fertilisers (2.63%)

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