Core Sectors

Core Sectors of the Indian economy are the primary or the key industries of the country's economy. In our country, eight sectors are viewed as the Core Sectors. In addition, the Index of Eight Core Industries (ICI) selected eight core industries, Crude Oil, Coal, Natural Gas, Refinery Products, Steel, Fertilizers, Cement, and Electricity, as core industrial sectors of the country. Keep reading the article below to learn more about Core Sectors to better prepare for your UPSC prelims and mains examination.

List of Eight Core Sectors of the Indian Economy

Mentioned hereunder are the eight Core Sectors of the Indian economy.

• Electricity
• Refinery products
• Steel
• Crude oil
• Coal
• Cement
• Natural gas
• Fertilisers

These core industries hold a significant effect on industrial and general economic activities. They significantly influence most other Indian industries as well. The core sector defines the assets base of the country's economy. In addition, these eight industries have a mixed share of over 40% in the IIP (Index of Industrial Production).

Understanding the Core Sectors Industries in the Index of Industrial Production (IIP)

Below is a tabular representation of core industries in the IIP (Index of Industrial Production).

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Eight Core Sectors of the Indian Economy - Detailed Overview

The ICI (Index of Eight Core Industries) refers to a production volume index formulated and released by the OEA ( Office of the Economic Adviser), Department for Promotion of Industry and Internal Trade [DPIIT], and Ministry of Commerce & Industry, Government of India. Below is a detailed overview of the eight Core Sectors of India.

The core sector list of the Indian economy is released 12 days before the Index of Industrial Production [IIP] is released.

The purpose of the Index of Eight Core Industries is to provide a progressive expression of the production performance of the core industries before the release of the Index of Industrial Production [IIP].

The elements included under the eight Core Sectors to calculate the ICI (Index of Eight Core Industries) are mentioned hereunder -

• Coal - Coal Production except for Coking coal.
• Electricity - Primary Electricity Generation of Nuclear, Thermal, and Hydro imports from Bhutan.
• Crude Oil - Comprehensive Crude Oil Production.
• Cement - Production of Extensive Factories and Mini Plants.
• Natural Gas - Cumulative Natural Gas Production.
• Steel - Production of Alloy and Non-Alloy Steel only.
• Refinery Products - Total Refinery Production (in terms of Crude).
• Fertiliser - Ammonium Sulphate (A/S), Urea, Calcium Ammonium Nitrate (CAN), Diammonium Phosphate (DAP), Ammonium chloride (A/C), Complex Grade Fertilizer, and Single superphosphate (SSP).

The ICI (Index of Eight Core Industries) is released each month. The index is computed using the Laspeyres procedure of the weighted arithmetic standard of quantity relatives.

The ICI (Index of Eight Core Industries) estimates the personal and collaborative performances of the production in these eight economic core industries.

The ICI (Index of Eight Core Industries) is employed by policymakers, including the Ministry of Finance, other Departments, and Indian Ministries.

FAQs on Core Sectors

Q.1. What do we mean by the Core Sectors of the Indian economy?

Core Sectors of the Indian economy are the primary or the key industries of the country's economy. In our country, eight sectors are viewed as the Core Sectors. In addition, the Index of Eight Core Industries (ICI) selected eight core industries, Crude Oil, Coal, Natural Gas, Refinery Products, Steel, Fertilizers, Cement, and Electricity, as core industrial sectors of the country.

Q.2. What are the eight Core Sectors of the Indian economy?

Mentioned hereunder are the eight Core Sectors of the Indian economy.

• Electricity
• Refinery products
• Steel
• Crude oil
• Coal
• Cement
• Natural gas
• Fertilisers

These core industries hold a significant effect on industrial and general economic activities.

Q.3. Which sector out of all Core Sectors holds maximum weightage?

Out of eight Core Sectors, the refinery sector holds a maximum weightage of 28.04%.

Q.4. What does ICA mean about Core Sectors of the Indian economy?

The ICI (Index of Eight Core Industries) refers to a production volume index formulated and released by the OEA ( Office of the Economic Adviser), Department for Promotion of Industry and Internal Trade [DPIIT], and Ministry of Commerce & Industry, Government of India.