In India the overall Index of Industrial Production, the Indices of Eight Core Industries have combined weight of 37.90%. Which of the following are among those Eight Core Industries?

1. Cement
2. Fertilisers
3. Natural Gas
4. Refinery products
5. Textiles

Select the correct answer using the code given below:

1. 1 and 5 only
2. 2, 3 and 4 only
3. 1, 2, 3 and 4 only
4. 1, 2, 3, 4 and 5

Explanation

Option (c) is correct

• The monthly Index of Eight Core Industries (ICI) is a production/output of eight core industries. The Office of Economic Advisor (Ministry of Commerce and Industries) releases ICI.
• The objective is to provide an advance indication of the production performance of core industries before the release of the Index of Industrial Production (IIP) by the Central Statistics Office (Ministry of Statistics and Programme Implementation).
• The core sectors account for about 40.3% of the Index of Industrial Production (IIP).
• Core Industries Weightage (In percentage):
  • Petroleum & Refinery production – 28.04
  • Electricity generation – 19.85
  • Steel production – 17.92
  • Coal production – 10.33
  • Crude Oil production – 8.98
  • Natural Gas production – 6.88
  • Cement production – 5.37
  • Fertilisers production – 2.63
• Index of industrial production (IIP)
  • IIP measures sectoral growth in India’s economy, including mining, electricity, and manufacturing.
  • IIP is compiled monthly by the NSO, Ministry of Statistics and Programme Implementation.
  • The IIP represents changes in production volume compared to a chosen base period (base value=100), with the current base year being 2011-2012.

Answer: (c) 1, 2, 3 and 4 only; Difficulty Level: Easy