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

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