Context
India’s core sector output increased by 6.7% in February, driven by significant growth in the coal, natural gas, and cement industries.
Key Highlights of the Core Sector Output Growth
- Coal Production: In February 2024, coal production increased by 11.6%, while natural gas production rose by 11.3%.
- Cement and Steel Production: Cement production increased by 10.2%, while steel production rose by 8.4%.
- Crude oil and Electricity generation: Crude oil production increased by 7.9% in February 2024. Electricity generation increased by 6.3% during the same time period.
- Decline in Fertilizer Production: However, fertilizer production decreased by 9.5% in February 2024.
- Growth in Index of Core Industries: From April to February 2023-24, the ICI had a preliminary growth rate of 7.7%.
- Growth in Petroleum Refinery Products: In February 2024, Petroleum Refinery Products climbed by 2.6%, leading to a 3.8% overall index growth.
- Strong Industrial Performance: Overall, robust growth in these main industries implies a strong industrial performance, albeit some sectors are experiencing variations.
What is Core Sector Growth?
- About: The main or the key industries constitute the core sectors of an economy. In India, there are eight sectors that are considered the core sectors.
- India’s Eight Core Sectors: The eight core sectors of the Indian economy are electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.
- Impact of Core Sector: These sectors have a major impact on the Indian economy and significantly affect most other industries as well.
- Share of Eight Core Sectors: The eight industries have a combined share of 40.27 per cent in the Index of Industrial Production (IIP), which gives the growth rates of different industry groups in a specified period.
- Published by: 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), and Ministry of Commerce & Industry.
Index of Industrial Production
- Economic Indicator: The Index of Industrial Production (IIP) is an important economic indicator that assesses the performance of a country’s main industrial sectors.
- Providing Insights into Economic Activity: It tracks variations in industrial output levels over time, providing insights into total economic activity.
- Classification: Industries are divided into broad sectors (mining, manufacturing, electricity) and use-based sectors (basic goods, capital goods, intermediate goods).
- Publisher: The Central Statistical Organisation (CSO), under the Ministry of Statistics and Programme Implementation, compiles and releases data weekly.
- Composition: The IIP’s primary sectors include refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilisers.
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Also Read: New Industrial Policy 2023
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March 29, 2024