Core sector Current Affairs

Core industries growth quickens to 6.7% in June 2018

As per data released by Union Ministry of Commerce and Industry, index of eight core industries expanded to 7-month high of 6.7% in June 2018. This was due to better performance by cement, refinery and coal sectors of the index. The previous high was witnessed in November 2017 at 6.9%. The growth rate in May 2018 was 4.3%.

Breakaway of June 2018

 

Key Facts

The combined index of eight core industries stands at 129.8 in June 2018 and was 6.7% higher as compared to the index of June 2017. Its cumulative growth during April to June 2018-19 was 5.2%. This growth in the core industry is considered by two factors.One is that government investment in infrastructure projects is going up, driving industries such as steel. The other is petroleum products are mainly exported and drive to increase exports will be pushing this up.

Core industries

Core industries are main or key industries of the economy. In most countries, these particular industry are backbone of all other industries. In India, there are eight core sectors comprising of coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity. The eight infrastructure sectors, constitute 40.27% of the total index of industrial production (IIP).

Revised 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%).

Month: Categories: Business & Economy Current Affairs 2018

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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%)

Month: Categories: Business & Economy Current Affairs 2018

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