Output of Core industries grew by 12.1% in October 2023

In October 2023, the combined Index of Eight Core Industries (ICI) exhibited a robust growth of 12.1%, marking a substantial increase from the corresponding month in 2022. The positive momentum was reflected across all eight core industries, namely Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products, and Steel. These industries collectively contribute 40.27% to the Index of Industrial Production (IIP).

I. Annual and Monthly Indices and Growth Rates

1. Annual Performance: The final growth rate for the Index of Eight Core Industries in July 2023 has been revised to 8.5%. The cumulative growth rate for the period of April to October 2023-24 stands at 8.6% (provisional), showcasing a positive trend compared to the corresponding period in the previous year.

2. Monthly Indices and Growth Rates: Annex I provides details of annual indices, while Annex II outlines monthly indices and growth rates for each core industry.

II. Breakdown of Core Industries Performance

Let’s delve into the performance of each core industry:

1. Cement (Weight: 5.37%)

• Cement production surged by 17.1% in October 2023 compared to October 2022.
• Cumulative index growth for April to October 2023-24 recorded an impressive 12.2% over the same period last year.

2. Coal (Weight: 10.33%)

• Coal production demonstrated a notable increase of 18.4% in October 2023 compared to the previous year.
• The cumulative index for April to October 2023-24 registered a robust growth of 13.1%.

3. Crude Oil (Weight: 8.98%)

• Crude Oil production experienced a modest growth of 1.3% in October 2023 over October 2022.
• However, the cumulative index reflected a slight decline of 0.1% during April to October 2023-24 compared to the corresponding period last year.

4. Electricity (Weight: 19.85%)

• Electricity generation witnessed a substantial increase of 20.3% in October 2023 compared to the same month in 2022.
• The cumulative index for April to October 2023-24 showed a commendable growth of 7.9% over the corresponding period of the previous year.

5. Fertilizers (Weight: 2.63%)

• Fertilizer production marked a positive growth of 5.3% in October 2023 over October 2022.
• The cumulative index for April to October 2023-24 exhibited a commendable growth of 6.7% compared to the corresponding period last year.

6. Natural Gas (Weight: 6.88%)

• Natural Gas production saw a noteworthy increase of 9.9% in October 2023 compared to October 2022.
• The cumulative index for April to October 2023-24 indicated a solid growth of 5.1% over the corresponding period of the previous year.

7. Petroleum Refinery Products (Weight: 28.04%)

• Petroleum Refinery production recorded a growth of 4.2% in October 2023 over October 2022.
• The cumulative index for April to October 2023-24 displayed a steady growth of 4.0% compared to the corresponding period last year.

8. Steel (Weight: 17.92%)

• Steel production showcased a substantial growth of 11.0% in October 2023 compared to October 2022.
• The cumulative index for April to October 2023-24 demonstrated a remarkable growth of 14.5% over the corresponding period of the previous year.

Questions Related to Exams

Q: What is the significance of the Index of Eight Core Industries (ICI)?

A: The ICI serves as a crucial metric, evaluating both combined and individual production performances across eight core industries. These industries, including Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products, and Steel, collectively account for 40.27% of the weight in the Index of Industrial Production (IIP).

Q: How did the combined Index of Eight Core Industries perform in October 2023?

A: In October 2023, the combined ICI exhibited a robust growth of 12.1%, showcasing a significant increase compared to October 2022. This positive trend in production was observed across all eight core industries.

Q: What is the cumulative growth rate of the Index of Eight Core Industries for April to October 2023-24?

A: The cumulative growth rate of the ICI during April to October 2023-24 is 8.6% (provisional). This indicates sustained positive performance compared to the corresponding period in the previous year.

Q: How did individual industries contribute to the overall growth in October 2023?

A: Notable highlights include substantial increases in Cement (17.1%), Coal (18.4%), Electricity (20.3%), and Steel (11.0%) production. However, Crude Oil production saw a modest increase of 1.3%, and its cumulative index declined by 0.1% during April to October 2023-24.

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