PIB Summary- 29th March, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Combined Index of Eight Core Industries increases by 6.7% (provisional) in Feb 2024 as compared to Index of Feb 2023

Context

The news reports a 6.7% increase in the Index of Eight Core Industries in February 2024, with positive growth recorded in Coal, Natural Gas, Cement, Steel, Crude Oil, Electricity, and Refinery Products production.

Additional information on this news:

• The Index of Eight Core Industries (ICI) increased by 6.7% in February 2024 compared to February 2023.
• Coal production surged by 11.6%, while Natural Gas production increased by 11.3% in February 2024.
• Cement production witnessed a substantial growth of 10.2%, while Steel production saw an 8.4% increase.
• Crude Oil production recorded a growth rate of 7.9% in February 2024.
• Electricity generation rose by 6.3% during the same period.
• However, Fertilizers production declined by 9.5% in February 2024.
• Cumulatively, from April to February 2023-24, the ICI showed a provisional growth rate of 7.7%.
• Key sectors like Coal and Steel exhibited impressive cumulative growth rates of 12.1% and 12.9% respectively during this period.
• Petroleum Refinery Products increased by 2.6% in February 2024, contributing to a cumulative index growth of 3.8%.
• Overall, the positive growth in these core industries indicates a favourable industrial performance, albeit with some sectors experiencing fluctuations.

Index of Industrial Production (IIP)

• The Index of Industrial Production (IIP) is a key economic indicator that measures the performance of various industrial sectors in a country.
• It reflects changes in the production levels of the industrial sector over a specific period, providing insights into the overall economic activity.
• IIP is calculated based on the volume of production in sectors manufacturing, mining, and electricity.
• Eight core industries of IIP:
  • Crude Oil: Weight: 8.98%
  • Coal: Weight: 10.33%
  • Natural Gas: Weight: 6.88%
  • Petroleum Refinery Products: Weight: 28.04%
  • Fertilizers: Weight: 2.63%
  • Steel: Weight: 17.92%
  • Cement: Weight: 5.37%
  • Electricity: Weight: 19.85%
• The base year for the IIP is typically chosen to serve as a reference point for comparing production changes over time – the current base year for IIP is 2011-12
• The index helps in assessing the growth or contraction of industrial output, aiding policymakers and investors in making informed decisions.
• It plays a crucial role in economic planning, policy formulation, and monitoring of industrial performance.
• A higher IIP indicates industrial growth, while a lower IIP suggests a decline in production.
• The IIP is often used by the government, researchers, and analysts to analyze trends and formulate strategies for economic development.

Department of Defence Production issues notification for re-organisation of DGQA

Context

The news highlights the reorganisation of the Directorate General of Quality Assurance (DGQA) under the Ministry of Defence, aimed at expediting quality assurance processes, reducing bureaucracy, and supporting India’s defence manufacturing industry.

Additional information on this news

• Department of Defence Production issued a notification for re-organisation of the Directorate General of Quality Assurance (DGQA) to streamline processes and reduce decision-making layers.
• Aimed at facilitating ‘Ease of Doing Business’ and achieving self-reliance (Aatmnirbharta) in Defence.
• Re-organisation aligned with corporatisation of Ordnance Factories into new DPSUs and increased involvement of private defence industry.
• New structure enables single point technical support for equipment/weapon platform and uniformity in product-based Quality Assurance (QA).
• Introduction of separate Directorate of Defence Testing and Evaluation Promotion for transparent allocation of Proof Ranges and testing facilities.
• Emphasis on automation and digitization of QA processes to enhance engagement of Defence Industry with DGQA.
• Reforms expected to boost indigenization efforts under ‘Aatmanirbhar Bharat’ by providing Indian standards and promoting export of high-quality defence products.

Indigenous defence production in India:

• Strategic Self-Reliance: To reduce dependency on foreign arms imports, ensuring security and sovereignty.
• Technology Acquisition: To acquire advanced military technologies and reduce reliance on other nations.
• Boost to Economy: Indigenous defence production can stimulate economic growth, create jobs, and contribute to GDP.
• Strategic Autonomy: Ensures autonomy in decision-making and reduces vulnerabilities in times of geopolitical tensions.

Challenges:

• Technological Gap: India lags in cutting-edge defence technologies, hindering indigenous production.
• Complex Procurement Procedures: Cumbersome procurement processes delay projects and deter private sector participation.
• Lack of Skilled Workforce: Shortage of skilled labour and engineers impedes the development of indigenous defence capabilities.
• Budgetary Constraints: Limited defence budget allocation constrains investment in research and development.
• Dependency on Imports: High dependency on foreign suppliers undermines self-reliance goals and national security.

Way Forward:

• Policy Reforms: Streamline procurement procedures, promote private sector participation, and incentivize indigenous production.
• Investment in R&D: Increase investment in research and development to develop advanced defence technologies domestically.
• Skill Development: Focus on skill development programs to train a skilled workforce for the defence industry.
• Public-Private Partnerships: Foster collaborations between the government, academia, and private sector to harness synergies in defence production.
• Export Promotion: Encourage export of indigenously developed defence equipment to boost revenue and enhance global competitiveness.
• International Collaboration: Forge strategic partnerships with other countries for technology transfer and joint development projects.
• Long-term Planning: Develop a comprehensive long-term strategy for indigenous defence production, aligning with national security objectives.