Core sector output expands by 12.7% in June

Tags: Economy/Finance

According to official data the output of eight core infrastructure sectors expanded by 12.7 per cent in June against 9.4 per cent in the year-ago period.

Important facts 

• The output growth of eight infrastructure sectors – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – stood at 19.3 per cent in May 2022.

• Production of coal, refinery products, fertilisers, cement and electricity grew by 31.1%, 15.1%, 8.2%, 19.4% and 15.5%, respectively, in June.

• Crude oil production contracted by 1.7%.

• Growth in natural gas and steel production declined to 1.2% and 3.3%.

Core Sector Industries in India

• The core industries have a major impact on general economic activities and industrial activities.

• They significantly impact most other industries and represents the capital base of the economy.

• The combined share of these eight industries in the Index of Industrial Production (IIP) is more than 40%.

• These eight core sectors are - electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.

About Index of Industrial Production (IIP)

• It is an index of India that details the development of various sectors such as mineral mining, power and manufacturing in an economy.

• The All India IIP is a composite indicator that measures short-term changes in the volume of production of a basket of industrial products over a given period.

• Base year of IIP is 2011-2012.

• NSO compiles the Index of Industrial Production (IIP) using secondary data received from 14 source agencies in various Ministries/Departments or their attached/subordinate offices.

What are Strategic Sectors?

• These are -

1. Atomic energy, space and defence

2. Transport and telecommunications

3. Power, petroleum, coal and other minerals and

4. Banking, insurance and financial services