Current Affairs

Low Growth of 3.6% Registered in the Index of Eight Core Industries

Growth in the index drops to a 10 month low! According to Index of Eight Core Industries released by Ministry of Commerce and Industry, the growth of eight core infrastructure industries has
Eight Core Industries

dropped to 10-month low of 3.6% in May 2018 due to decline in production of crude oil and natural gas.
  • This is the lowest growth rate since July 2017 when eight core infrastructure industries had expanded by 2.9%.
  • The growth rate recorded in April 2018 stood higher at 4.6%.
  • In April and May 2018, the eight industries recorded 4.1% growth compared to 3.3% in same period in 2017.

What are Core Industries?

  • Core industries can be defined as main or key industries of the economy.
  • In most countries, these particular industry are backbone of all other industries.
  • In India, there are eight core sectors comprising of coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity.
  • The eight infrastructure sectors, constitute 40.27% of the total index of industrial production (IIP).

Let's look at the revised weightage in Core Sectors:

  • Petroleum Refinery production (weight: 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%)
Low Growth of 3.6% Registered in the Index of Eight Core Industries Low Growth of 3.6% Registered in the Index of Eight Core Industries Reviewed by Shweta Kashyap on July 04, 2018 Rating: 5

No comments: