Core Sectors Output

India’s eight core sectors’ output growth moderated to 12.7% in June, 2022 from 18.1% in May, 2022 with all sectors except crude oil registering an uptick in production.

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What Are Core Sectors

Eight Core Sectors

Coal, Crude Oil, Natural Gas, Refinery Products, Fertiliser, Steel, Cement, Electricity

These comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

The eight core sector industries in decreasing order of their weightage:

Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.

Index of Industrial Production

IIP is an indicator that measures the changes in the volume of production of industrial products during a given period.

It is compiled and published monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation.

It is a composite indicator that measures the growth rate of industry groups classified under:

Broad Sectors

Mining, Manufacturing, and Electricity.

Use-Based Sectors

Basic Goods, Capital Goods, and Intermediate Goods.

Base Year for IIP is 2011-2012.

Significance of IIP

It is used by government agencies including the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes.

IIP remains extremely relevant for the calculation of the quarterly and advance GDP (Gross Domestic Product) estimates.