Q: In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?
a) Coal production
b) Electricity generation
c) Fertilizer production
d) Steel production
The correct answer is Option 2.
Index of Eight Core Industries (ICI)
- It is a production volume index.
- It measures the collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
- It is compiled and released by the Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), and Ministry of Commerce & Industry.
The Index of Industrial Production
- It is an index that shows the growth rates in different industry groups of the economy over a fixed period.
- This is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
- 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.
- The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
- The eight core industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
- The base year for IIP calculation is 2011-2012.
- Previously, Electricity was having the highest weightage. Hence, Option 2 is correct.
- Currently, Refinery Products has the highest weightage.
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