{"id":129024,"date":"2024-08-31T20:03:14","date_gmt":"2024-08-31T14:33:14","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=129024"},"modified":"2025-02-13T15:59:22","modified_gmt":"2025-02-13T10:29:22","slug":"core-sector-growth","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/core-sector-growth","title":{"rendered":"Core Sector Growth"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">According to the recently released official data by the Ministry of Commerce and Industry, India&#8217;s <\/span><b>core sector output grew by 6.1%<\/b><span style=\"font-weight: 400;\"> in July, down from 8.5% a year ago.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-129013 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/316-66d3209f89ccf.webp\" alt=\"Core Sector Growth\" width=\"199\" height=\"220\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/316-66d3209f89ccf.webp 427w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/316-66d3209f89ccf-271x300.webp 271w\" sizes=\"(max-width: 199px) 100vw, 199px\" \/><\/p>\n<h2><span style=\"font-size: 18pt;\"><strong>Crucial Insights on the Released Data<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The core sector comprises<\/span><b> coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Summary of the Index of 8 Core Industries:<\/span><\/p>\n<table style=\"width: 99.8696%;\">\n<tbody>\n<tr>\n<td style=\"width: 51.4722%; text-align: center; border-style: solid; border-color: #000000;\"><b>Core Industry<\/b><\/td>\n<td style=\"width: 167.339%; text-align: center; border-style: solid; border-color: #000000;\"><b>Weight<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Cement<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">5.37%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Coal<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">10.33%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Crude Oil<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">8.98%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Electricity<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">19.85%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Fertilizers<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">2.63%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Natural Gas<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">6.88%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Petroleum Refinery Products<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">28.04%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 51.4722%; border-style: solid; border-color: #000000;\"><b>Steel<\/b><\/td>\n<td style=\"width: 167.339%; border-style: solid; border-color: #000000;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">17.92%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li><b>Growth:<\/b><span style=\"font-weight: 400;\"> Despite an unfavourable base effect, the core sector output grew <\/span><b>better than the previous month.<\/b><span style=\"font-weight: 400;\"> The growth rate is <\/span><b>up from 5.1% in June.<\/b>\n<ul>\n<li><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-129014 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/317-66d3209ef3d87.webp\" alt=\"Core Sector Growth\" width=\"399\" height=\"312\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/317-66d3209ef3d87.webp 707w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/317-66d3209ef3d87-300x235.webp 300w\" sizes=\"(max-width: 399px) 100vw, 399px\" \/><span style=\"font-weight: 400;\">In<\/span><b> June 2024, the growth in IIP was at a five-month low of 4.2%. <\/b><span style=\"font-weight: 400;\">It was 4% in June last year.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Reason for Growth is Rise in Infrastructure Activity:\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Infra activity on the <\/span><b>government side<\/b><span style=\"font-weight: 400;\"> picked up, which resulted in <\/span><b>steel and cement <\/b><span style=\"font-weight: 400;\">growing. This came over high base year growth rates.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Post election, there has been a pick up in<\/span><b> road construction<\/b><span style=\"font-weight: 400;\"> in particular. The good performance of <\/span><b>housing and auto <\/b><span style=\"font-weight: 400;\">also added to the demand for<\/span><b> steel.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Growth in<\/span><b> fertilisers<\/b><span style=\"font-weight: 400;\"> indicates that companies are <\/span><b>building stocks for both kharif and rabi seasons.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Higher <\/span><b>refinery products<\/b><span style=\"font-weight: 400;\"> growth can be attributed to higher<\/span><b> industrial activity as well as exports.<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><strong>About Core Sector Growth in India<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Impact of Core Sector:<\/b><span style=\"font-weight: 400;\"> These sectors have a major impact on the Indian economy and significantly affect most other industries as well.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Share of Eight Core Sectors<\/b><span style=\"font-weight: 400;\">: The eight industries have a combined share of<\/span><b> 40.27% <\/b><span style=\"font-weight: 400;\">in the<\/span><b> Index of Industrial Production (IIP), <\/b><span style=\"font-weight: 400;\">which gives the growth rates of different industry groups in a specified period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Published by:<\/b><span style=\"font-weight: 400;\"> The<\/span><b> Index of Eight Core Industries (ICI)<\/b><span style=\"font-weight: 400;\"> 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 &#038; Industry.<\/span><\/li>\n<\/ul>\n<table style=\"width: 99.9987%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h3><span style=\"font-size: 16pt; color: #000000;\"><strong>Index of Industrial Production<\/strong><\/span><\/h3>\n<p><span style=\"font-weight: 400; color: #000000;\">The Index of Industrial Production (IIP) is an important economic indicator that assesses the performance of a country&#8217;s main industrial sectors.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Providing Insights into Economic Activity:\u00a0 <\/b><span style=\"font-weight: 400;\">It tracks variations in industrial output levels over time, providing insights into total economic activity.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Classification: <\/b><span style=\"font-weight: 400;\">Industries are divided into broad sectors (mining, manufacturing, electricity) and use-based sectors (basic goods, capital goods, intermediate goods).<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Publisher:<\/b><span style=\"font-weight: 400;\"> The Central Statistical Organisation (CSO), under the Ministry of Statistics and Programme Implementation, compiles and releases data weekly.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Composition: <\/b><span style=\"font-weight: 400;\">The IIP&#8217;s primary sectors include refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilisers.<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table style=\"width: 100.026%;\">\n<tbody>\n<tr>\n<td style=\"width: 137.909%; 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