UPSC Exam   »   Core Sector Industries

Core Sector Industries


Core Sector Industries: Relevance

  • GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.


8 Core Sector Industries: Context

  • According to the recently released official date, production of eight infrastructure sectors expanded by 3.8 per cent in December 2021 against a 0.4 per cent contraction in the same month last year.


Core Sector Industries: Key points

  • Barring crude oil and steel, all sectors recorded positive growth in December 2021.
  • The growth rate of the eight infrastructure stood at 12.6 per cent during April-December this fiscal as against a negative growth of 9.8 per cent during the same period last fiscal.
  • According to the data, production of coal rose by 5.2 per cent, natural gas by 19.5 per cent, refinery products by 5.9 per cent, fertilisers by 3.5 per cent, cement by 12.9 per cent, and electricity by 2.5 per cent in December.
  • The output of crude oil and steel declined by 1.8 per cent and 1 per cent respectively during the period under review.



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What are core sectors in India?

  • The main or the key industries constitute the core sectors of an economy.
  • In India, there are eight sectors that are considered the core sectors as they have a major impact on the Indian economy and significantly affect most other industries as well
  • The eight-core sectors of the Indian economy are
    • Electricity,
    • Steel,
    • Refinery products,
    • Crude oil,
    • Coal,
    • Cement,
    • Natural gas, and
    • Fertilizers
  • The eight industries have a combined share of 27 per cent in the Index of Industrial Production (IIP), which gives the growth rates of different industry groups in a specified period.


Eight core industries weightage

  • The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.


Industry Weight (In percentage)
Petroleum & Refinery production 28.04
Electricity generation 19.85
Steel production 17.92
Coal production 10.33
Crude Oil production 8.98
Natural Gas production 6.88
Cement production 5.37
Fertilizers production 2.63


Core Sector Industries_50.1

About the Index of Industrial Production (IIP)

  • The Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
  • It is published monthly by the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation (MoSPI) six weeks after the reference month ends.
  • The base year of the Index of Eight Core Industries has been revised from the year 2004-05 to 2011-12 from April, 2017.


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