Index of Eight Core Industries
21, Jul 2018
Prelims level : Indian Economy Mains level : Paper - III Effect on Industrial Growth
- Index of eight core industries was released by ministry of commerce and industries. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
- It is called core industries because of their likely impact on general economic activity as well as other industrial activity
- The Index of Eight Core Industries is a monthly production index, which is also considered as a lead indicator of the monthly industrial performance. The Index of Eight Core Industries is compiled based on the monthly production information received from the Source Agencies.
- It contains index, production and growth of Eight Core Industries. Eight Core Industries and their weightage are:
|3||Crude Oil production||6.88|
The index is calculated by using the Laspeyre’s formula of weighted arithmetic mean of quantity relatives.
The objective of the ICI is to provide an advance indication on production performance of industries of ‘core’ nature before the release of Index of Industrial Production (IIP) by Central Statistics Office.
The Index is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Government of India, on last working day of every month at 5.00 P.M.
Base year 2011-2012.