Core sector Current Affairs

Core sector grows at 6.7% in January 2018

According to index of eight core industries released by Ministry of Commerce and Industry, Core sector growth has grown at faster pace of 6.7% in January 2018 against 3.4% in January 2017. The eight core sectors had grown by 4.2% in December 2017 and 7.4% in November 2017.

Key Facts

Cumulatively, the growth in eight core sectors during April-January this fiscal slowed to 4.3% as against 5.1% in the same period last fiscal. The growth in key sectors will have implications for Index of Industrial Production (IIP) as these eight segments account for about 41% of the total factory output.

Breakup of January performance:

  • Petroleum refinery production: It jumped up by 11%.
  • Cement output: It jumped up by 20.7%.
  • Electricity generation: Its growth rose to 8.2%.
  • Coal sector output: It improved by 3%.
  • Steel production: It grew by 3.7%.
  • Crude oil production: It dropped by 3.2%.
  • Fertiliser output: It dropped by 1.6%.
  • Natural gas: Its output fell by 1%.

Core Industry sector

Core industry can be defined as main industry of the economy. In most countries, there is particular industry that seems to be backbone of all other industries and it qualifies to be the core industry. In India, there are eight core sectors comprising of coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity.

Latest weightage in core sectors: Petroleum Refinery production (weight: 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%), Fertilizers production (2.63%)

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Core sector growth hits 6-month high of 5.2% in September 2017

According to index of eight core industries released by the Union Ministry of Commerce and Industry, Core sector growth has hit six-month high in September 2017.

The core industries comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity was up 5.2% in September 2017 compared with 4.4% in August 2017 and 5.3% in September 2016. Besides, August 2017 core sector growth was revised downwards from 4.9%.

Sector wise growth

Production of coal, natural gas and refinery products rose 10.6%, 6.3% and 8.1%, respectively in September 2017. Electricity generation rose by 5.2%, and steel production by 3.7%. Crude output and cement production was stagnant at 0.1% each, while fertilisers output contracted 7.7%. Strong core sector growth suggests higher industrial output in September 2017. It shows that the country’s economy has picked up pace after disappointing first quarter.

Core Industry sector

Core industry can be defined as the main industry. In most countries, there is a particular industry that seems to be the backbone of all other industries and it qualifies to be the core industry. In India, there are eight core sectors comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.

The electricity has the maximum weight of 10.32% followed by Steel (6.68%), Petroleum Refinery (5.94%), Crude Oil production (5.22 %), Coal production (4.38 %), Cement (2.41%), Natural Gas production (1.71 %) and Fertilizer production (1.25%). These eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP), which measures factory output.

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