Index Of Eight Core Industries Increases By 5.4 Per Cent

Production of eight infrastructure sectors increased by 5.4 per cent in November against a 3.2 per cent growth in the same month last year on a better show by coal, fertiliser, steel, cement and electricity segments. Crude oil, natural gas and refinery products, however, recorded negative growth in November this year. The production growth of eight key sectors slowed down to 0.9 per cent in October.

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Growth of the Key Sectors:

• The growth rate of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — stood at 8 per cent in April-November this fiscal as against 13.9 per cent during the same period last fiscal.
• The production of coal rose by 12.3 per cent, fertiliser by 6.4 per cent, steel by 10.8 per cent, cement by 28.6 per cent and electricity by 12.1 per cent in November 2022 compared to a year ago.

The Concerning Situation:

• Petroleum Refinery production (weight: 28.04 per cent) declined by 9.3 per cent in November, 2022 over November, 2021. Its cumulative index increased by 5.7 per cent during April to November, 2022 over the corresponding period of previous year.
• Natural Gas production (weight: 6.88 per cent) declined by 0.7 per cent in November, 2022 over November, 2021. Its cumulative index increased by 0.7 per cent during April to November, 2022 over the corresponding period of previous year.

About Index of Industrial Production (IIP):

• It is a composite indicator that measures the growth rate of industry groups classified under:
  • Broad sectors, namely, Mining, Manufacturing, and Electricity.
  • Use-based sectors, namely Basic Goods, Capital Goods, and Intermediate Goods.
• In India, the first official attempt to compute the Index of Industrial Production (IIP) was made much earlier than the first recommendation on the subject came at the international level.
• With the inception of the Central Statistical Organization (now known as the National Statistics Office (NSO)) in 1951, the responsibility for compilation and publication of IIP was vested with it.
• Ministry: Ministry of Statistics and Programme Implementation.
• Base year: 2011-2012
• The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) has released the Index of Eight Core Industries (ICI).

About Eight Core Sectors:

• These comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
• The eight core sector industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.