CORE SECTOR - ECONOMY
News:
Core sectors’ output dipped to 5-month low of 3.6% in March
What's in the news?
● Growth
in India’s eight core sectors’ output fell to a five-month low of 3.6% in
March, from 7.2% in February, with electricity and cement production slipping
from a year ago, and crude oil output falling for the tenth successive month.
Key takeaways:
● Coal
production jumped 12.2% in March, while fertilizers and steel output grew 9.7%
and 8.8% respectively - relatively slower than recent months as per data
released by the Commerce and Industry Ministry on Friday.
Core Sector:
● The
Office of Economic Adviser, Department for Promotion of Industry and Internal
Trade (Ministry of Commerce)
releases Index of Eight Core Industries (ICI).
● ICI
measures combined and individual performance of production in selected eight core industries viz. Coal, Crude
Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and
Electricity.
● The
Eight Core Industries comprise 40.27% of
the weight of items included in the Index of Industrial Production (IIP).
● Eight
Core Sectors Industries of the Indian economy are as follows.
○ Refinery
products - 28.04
○ Electricity
- 19.85
○ Steel
- 17.92
○ Coal
- 10.33
○ Crude
oil - 8.98
○ Natural
gas - 6.88
○ Cement
- 5.37
○ Fertilizers
- 2.63
Significance of Core Sector:
● These
industries have a major impact on general economic activities and also
industrial activities. They significantly impact most other industries as well.
The core sector represents the capital
base of the economy.