Index of Eight Core Industries for August 2024

In August 2024, the Index of Eight Core Industries declined by 1.8% compared to August 2023. Positive growth was recorded in Steel (4.5%) and Fertilizers (3.2%), while Coal, Crude Oil, and Electricity saw significant declines.

Piyush Shukla Last updated on November 7th, 2024 11:35 am

The Index of Eight Core Industries (ICI) serves as a crucial indicator of the industrial health of the economy. In August 2024, the combined index declined by 1.8% compared to August 2023. However, production in the Steel and Fertilizers sectors demonstrated positive growth during the same period.

Key Highlights

The Eight Core Industries include:

Cement
Coal
Crude Oil
Electricity
Fertilizers
Natural Gas
Refinery Products
Steel

These industries collectively account for 40.27% of the weight in the Index of Industrial Production (IIP).

Sector-wise Performance in August 2024

Coal: Production decreased by 8.1% compared to August 2023, but the cumulative index rose 6.5% from April to August 2024.
Crude Oil: Experienced a 3.4% decline in production, with a cumulative index decrease of 1.7% during the same period.
Natural Gas: Production fell by 3.6%, while the cumulative index saw an increase of 2.6%.
Petroleum Refinery Products: Declined by 1.0% in August but showed a cumulative growth of 1.7%.
Fertilizers: Increased production by 3.2% and a cumulative rise of 1.7%.
Steel: Produced 4.5% more than in the previous year, with a cumulative index increase of 7.3%.
Cement: Production fell by 3.0%, with a cumulative increase of 0.7%.
Electricity: Declined by 5.0%, but the cumulative index increased by 6.8%.

Overall Growth Rates

The final growth rate for May 2024 was 6.9%.
The cumulative growth rate from April to August 2024 stands at 4.6% compared to the same period in the previous year.

Index Values

Here are the index values for key sectors in August 2024:

Sector	Weight (%)	Index Value (Aug 2024)	Growth Rate (%)
Coal	10.33	138.2	-8.1
Crude Oil	8.98	75.7	-3.4
Natural Gas	6.88	77.4	-3.6
Petroleum Refinery	28.04	134.0	-1.0
Fertilizers	2.63	137.5	3.2
Steel	17.92	207.4	4.5
Cement	5.37	176.5	-3.0
Electricity	19.85	209.4	-5.0
Overall Index	100.00	155.8	-1.8

Here is a concise table with key points relevant for exam preparation:

Key Points	Details
Why in News	Index of Eight Core Industries (ICI) declined by 1.8% in August 2024, with positive growth in Steel and Fertilizers sectors.
Eight Core Industries	Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products, Steel.
Weight in IIP	These industries account for 40.27% of the weight in the Index of Industrial Production (IIP).
Coal Production	Declined by 8.1%, cumulative growth of 6.5% from April-August 2024.
Crude Oil Production	Declined by 3.4%, cumulative decrease of 1.7%.
Natural Gas Production	Declined by 3.6%, cumulative growth of 2.6%.
Petroleum Refinery Products	Declined by 1.0%, cumulative growth of 1.7%.
Fertilizers Production	Increased by 3.2%, cumulative growth of 1.7%.
Steel Production	Increased by 4.5%, cumulative growth of 7.3%.
Cement Production	Declined by 3.0%, cumulative growth of 0.7%.
Electricity Production	Declined by 5.0%, cumulative growth of 6.8%.
Overall Growth Rate	Cumulative growth rate for April-August 2024 stands at 4.6% compared to the previous year.
Index Values (Aug 2024)	Coal: 138.2 (-8.1%), Crude Oil: 75.7 (-3.4%), Natural Gas: 77.4 (-3.6%), Petroleum Refinery: 134.0 (-1.0%), Fertilizers: 137.5 (3.2%), Steel: 207.4 (4.5%), Cement: 176.5 (-3.0%), Electricity: 209.4 (-5.0%).
Overall Index	Index Value: 155.8, Growth Rate: -1.8%.