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What are Core Sectors?
- These are the most important sectors of the economy and constitute 40.27% of the weight of items included in the Index of Industrial Production (IIP).
- The Index of eight core industries (ICI) is prepared every month by the Office of the Economic Adviser (OEA), the Department for Promotion of Industry and Internal Trade (DPIIT), and the Ministry of Commerce & Industry.
- Core industries include eight sectors of the Indian economy that are mentioned below:
- Coal – Coal production, excluding Coking coal.
- Electricity – Electricity generation of thermal, nuclear, hydro, imports from Bhutan.
- Crude Oil – Total crude oil production.
- Cement – Production in large plants and mini plants.
- Natural Gas – Total production of natural gas.
- Steel – Production of alloy and non-alloy steel only.
- Refinery Products – Total refinery production.
- Fertilizer – Urea, ammonium sulfate, calcium ammonium nitrate, complex grade fertilizer, and single superphosphate, among others.
- The Eight Core Industries in decreasing order of their weightage are Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
- They are so-called as are considered to be the backbone of all other industries. The core sectors have a significant impact on the economy and impact most other industries as well.
Recent Trends in Core Sectors
November 2021:
- Aggregate Index of Eight Core Industries: 131.7, up by 3.1 percent (provisional) from November 2020.
- Production Increase in November 2021: Coal, Natural Gas, Refinery Products, Fertilizers, Steel, and Electricity compared to the same month in the previous year.
December 2021:
- Aggregate Index of Eight Core Industries: 141.3, a 3.8 percent (provisional) increase over December 2020.
- Production Increase in December 2021: Coal, Natural Gas, Refinery Products, Fertilizers, Cement, and Electricity industries compared to the previous year.
Growth Rates (on a Y-o-Y basis in per cent)
Conclusion
Core sector and IIP, on one hand, are volume numbers, whereas GDP is a value addition. The same volume of sale of two different goods may not always add up to the same amount of GDP.
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FAQs on Core Industries - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year
| 1. What are core sectors? |  |
| 2. Which industries are considered core sectors? | |
Ans. Core sectors typically include industries such as agriculture, manufacturing, mining, energy, and infrastructure. These sectors play a crucial role in providing necessary goods, services, and infrastructure for the overall development of a country.
| 3. Why are core sectors important for the economy? | |
Ans. Core sectors are important for the economy due to several reasons. They contribute significantly to the country's gross domestic product (GDP), generate employment opportunities, attract investments, promote industrial growth, and enhance the overall competitiveness of the nation.
| 4. How does the SSC CGL exam relate to core sectors? | |
Ans. The Staff Selection Commission Combined Graduate Level (SSC CGL) exam is a competitive exam conducted by the Indian government for recruitment to various Group B and Group C posts in different government departments and organizations. The exam may include questions related to core sectors as they are an integral part of the country's economy.
| 5. What are some frequently asked questions (FAQs) related to core sectors in the SSC CGL exam? | |
Ans.
1. What is the contribution of core sectors to India's GDP?
2. What are the major challenges faced by core sectors in India?
3. How does the government support and promote core sectors in the country?
4. What are the recent policy initiatives taken to boost growth in core sectors?
5. How do core sectors impact employment generation in India?
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