Q. Why is this in news?
A. India’s eight core sectors’ output growth moderated to 12.7% in June, 2022 from 18.1% in May, 2022 with all sectors except crude oil registering an uptick in production.
Q. What are Core Sectors?
A.
- Eight Core Sectors:
- Coal, Crude Oil, Natural Gas, Refinery Products, Fertiliser, Steel, Cement, Electricity
- About:
- 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.
Q. What is Index of Industrial Production?
A.
- IIP is an indicator that measures the changes in the volume of production of industrial products during a given period.
- It is compiled and published monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation.
- It is a composite indicator that measures the growth rate of industry groups classified under:
- Broad sectors:
- Mining, Manufacturing, and Electricity.
- Use-based sectors:
- Basic Goods, Capital Goods, and Intermediate Goods.
- Base Year for IIP is 2011-2012.
- Significance of IIP:
- It is used by government agencies including the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes.
- IIP remains extremely relevant for the calculation of the quarterly and advance GDP (Gross Domestic Product) estimates.
