Index of Eight Core Industries UPSC

Index of Eight Core Industries (ICI) refers to a production volume index that measures the collective and individual production performances of eight selected core industries. These industries are Natural Gas, Coal, Refinery Products, Crude Oil, Cement, Electricity, Steel, and Fertilizers. The compilation and releasing of the index are done by the Office of the Economic Adviser (OEA), Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry.

The Index of Eight Core Industries UPSC syllabus contains several related details that are stated below. You are required to pay much attention to the paragraphs below.

Index of Eight Core Industries UPSC

Questions regarding the Index are very common in the Current Affairs section of the UPSC examination. The recent release of the Office of the Economic Adviser (OEA), Department for Promotion of industry and Internal Trade has stated that the rate of growth of the ICI as of July 2021 has increased by 9.4% (provisional).

The combined ICI was stated to be 134.0 as of July 2021, increasing by 9.4% (provisional) from the July 2020 Index. The cumulative growth of the Index between April and July of 2021-22 has been stated as 21.2% (P) in comparison to the corresponding span of the previous financial year. The monthly production figure of the eight core industries stated under the ICI improved by 5.42% (P) in July 2021 compared to June 2021.

In India, 8 sectors are considered the Core Sectors. These industries have a major impact on general economic activities and also industrial activities. They significantly impact most other industries as well.

The Eight Core Industries

The Eight Core Industries, as stated above, includes Natural Gas, Coal, Refinery Products, Crude Oil, Cement, Electricity, Steel, and Fertilizers. These industries are termed as the core industries owing to their strong impact on the general economic activities and the other industrial activities.

These industries comprise a total of 40.27% of the total weight of the overall items that are included in the Index of Industrial Production (IIP). The Index of Eight Core Industries highest weight is currently possessed by the Refinery Products Industry. Earlier the highest weightage was given to the Electricity Industry. In the decreasing order of the weightage of these industries, the list is stated as below:

• Refinery Products Industry
• Electricity Industry
• Steel Industry
• Coal Industry
• Crude Oil Industry
• Natural Gas Industry
• Cement Industry
• Fertilizers Industry

Current Figures of Weightage of Eight Core Industries

The weightage figures are stated below in decreasing order and will be important for the IAS Exam:

Also, read What are the main sectors of the Indian economy?

Calculation of the Index

The inter-se weights of all these industries are mostly in alignment with their respective weights in the Index of Industrial Production. The new IIP series has revised the base year for the ICI to 2011-12 from the initial base of 2004-05. The calculation of the Index is done by using the Laspeyres formula. Here, the weighted arithmetic mean of the quantity relatives is used. For a reference month, the ICI is released with a one-month time lag on the very last day of the following month. This is about twelve days before the IIP release for the month that is taken as the reference month.

On the last working day of each month, the monthly Index gets released at 5:00 PM. In case the last day is a holiday, the first working day of the following month is taken as the date for releasing the monthly Index. The Index gets released by the Press Information Bureau (PIB) and on the official website of the Office of the Economic Adviser. The calculation details will be significant for the UPSC 2022 and shall be carefully studied by the students.