CORE SECTOR

Why in news?

Core sector output reach a 3 month high of 6.7%

ABOUT

The core sector in India comprises eight key industries: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity.

The growth rate of the core sector is a crucial indicator of the overall health of the Indian economy. A strong growth rate in the core sector often signals a positive economic outlook.

Index of Eight Core Industries (ICI):

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.

The ICI comprises various components that collectively reflect the performance and vitality of India’s industrial sector. These components include:

• Coal:Coal production, excluding Coking coal.
• Electricity:Electricity generation from thermal, nuclear, hydro sources, and imports from Bhutan.
• Crude Oil:Total crude oil production.
• Cement:Production in both large plants and mini plants.
• Natural Gas:Total production of natural gas.
• Steel:Production of alloy and non-alloy steel only.
• Refinery Products:Total refinery production.
• Fertiliser:Production of urea, ammonium sulphate, calcium ammonium nitrate, complex grade fertiliser, single superphosphate, among others.

The current weightage, of eight core industries is Petroleum Refinery Products (28.04%)> Electricity (19.85%) > Steel (17.92%) > Coal (10.33%) > Crude Oil (8.98%) > Natural Gas (6.88%) > Cement (5.37%) > Fertiliser (2.63%).