PIB Summary- 1st January, 2025 - UPSC

Index of Eight Core Industries (Base: 2011-12 = 100) For November, 2024

Context

The Index of Eight Core Industries grew by 4.3% in November 2024, with Cement, Coal, and Steel showing growth, while Crude Oil and Natural Gas declined.

Index of Eight Core Industries

Overview

• The ICI measures the combined and individual performance of eight core industries that form the backbone of India’s industrial economy.
• These industries are Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
• The eight core industries collectively hold a 40.27% weight in the Index of Industrial Production (IIP).

Components and Their Weights

Monitoring:

• The Office of the Economic Adviser (OEA) under the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry compiles and releases the ICI monthly.

Base Year:

• The base year for the ICI is 2011-12.

Data Sources:

• Production data for each industry is sourced from respective government agencies.

Purpose

• Tracks industrial performance for economic planning and policy formulation.
• Provides insights into trends and growth patterns of key sectors.
• The ICI provides valuable insights into the performance of key sectors, aiding policymakers in economic decision-making.

Index of Industrial Production (IIP):

• The Index of Industrial Production (IIP) measures the growth rate of various sectors in an economy, such as manufacturing, mining, and electricity.
• It is released monthly by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation.
• The base year for calculating IIP is 2011-12.
• IIP uses a weightage system: manufacturing (77.63%), mining (14.37%), and electricity (7.99%).
• It is an essential indicator of industrial performance and overall economic activity.