Core Sector grew by 6.7% in February 2024
Economy
5 min read
According to the data released by the Union Ministry of Commerce and Industry, the index of eight core industries for February 2024 grew by 6.7 per cent. In January 2024, the growth rate in the core industry index was 4.1 per cent. All the index sectors registered positive growth except the fertilizers sector, which registered a decline of 9.5.
The production figure is compared to the same period as last year.
Growth rate of Core Industries in February 2024
- Coal production recorded a growth rate of 11.6 per cent in February 2024 compared to the same time last year.
- Cement production increased by 10.2 per cent.
- Crude oil production increased by 7.9 per cent.
- Electricity generation increased by 6.3 per cent.
- Natural gas production registered a significant growth of 11.3 per cent.
- Petroleum refinery production increased by 2.6 per cent.
- Steel production also witnessed a notable growth of 8.4 per cent
- Fertilizer production declined by 9.5 per cent.
What is Core Industry?
Certain industries are considered ‘core’ for the country's industrial and economic activities. In India, the Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP) under the Union Ministry of Commerce & Industry, compiles an Index of Core Industries (ICI).
The Index reflects the change in the production volume of the core industries included in the index. Considering the importance of the core industries, the data of ICI is always released ahead of the Index of Industrial Production (IIP)
The ICI was first introduced in 2007-08, with the base year of 1993-94. It included six core industries: Coal, Cement, Electricity, Crude Oil, Refinery products, and Steel.
The ICI was later expanded to include Natural Gas and Fertilizers.
The Eight Core Industries are :
- Coal – Coal Production excluding Coking coal.
- Crude Oil – Total Crude Oil Production.
- Natural Gas – Total Natural Gas Production
- Refinery Products – Total Refinery Production (in terms of Crude oil)
- Fertilizer – Urea, Ammonium Sulphate (A/S), Calcium Ammonium Nitrate (CAN), Ammonium chloride (A/C), Diammonium Phosphate (DAP), Complex Grade Fertilizer and Single superphosphate (SSP).
- Steel – Production of Alloy and Non-Alloy Steel only.
- Cement – Production of Large Plants and Mini Plants.
- Electricity – Electricity generation of thermal, nuclear, and hydropower and imports from Bhutan.
The weightage of the Eight Core Industries in the Index of Industrial Production is 40.27 per cent. The base year of the current Index of Core Industries is 2011-2012.
Composition of the Index of Core Industries
Following is the Index of Core Industries composition and their weightage in the Index of Core Industries.
|
Serial Number |
Core Industries |
Weightage in Index of Eight Core Industries |
|
1. |
Petroleum Refinery Products |
28.04 per cent |
|
2. |
Electricity |
19.85 per cent |
|
3. |
Steel |
17.92 per cent |
|
4. |
Coal |
10.33 per cent |
|
5. |
Crude Oil |
8.98 per cent |
|
6. |
Natural Gas |
6.88 per cent |
|
7. |
Cement |
5.37 per cent |
|
8. |
Fertilizers |
2.63 per cent |
|
Total |
8 |
100 per cent |
