CSO Current Affairs - 2020

Core sector Growth of India hit due to Lock Down

The core sectors of India include crude oil, steel, natural gas, refinery product, cement, fertilizer, electricity and coal. According to the figures released by the Ministry of Commerce recently, the production of core industries of India shrank in March, 2020 due to lock down.

Highlights

The output of the core industries has reduced by 6.5% in the month of March. This is the sharpest reduction since 2012.

  • The petroleum sector slid by 0.5% as the transportation sector was completely halted
  • The demand of electricity decreased by 7.2%. The production was relatively reduced.
  • With the construction sector coming to a complete halt, cement industry saw 25% drop.
  • The steel production demand reduced by 13%.
  • The only sector that saw a positive figure was coal.

Significance

The eight crore industries have a weight of 40.27% in the Index of Industrial Production. With these industries contracting in their output, the country is to face very low economic output.

Index of Industrial Production

The Index of Industrial Production is published by the Central Statistical Organization. It shows the growth rate of different industrial groups. The IIP is calculated with 2011-12 as the base year.

The IIP indicator measures broad sectors namely mining, electricity and manufacturing. It also measures use-based sectors namely capital goods and intermediate goods and basic goods.

GoI releases First Advance Estimates: GDP Growth Rate predicted as 5%

On January 7, 2020, the CSO (Central Statistics Office) operating under Ministry of Statistics and Programme implementation released the first advance estimates of GDP number for the fiscal year 2020. The numbers are in line with the predictions of Reserve Bank of India

Highlights

According to the report, the GDP growth is estimated at 5% for the year 2019-20 as against 6.8% in 2018-19. The report says that the deceleration is mainly due to the decline in the growth of manufacturing sector. The manufacturing sector grew at the rate of 2% in 2019-20 as compared to 6.9% in 2018-19.

Also, the core sectors and the industrial sectors showed a 11-year drop in GDP growth. There are eight core industries in India. It includes crude oil, electricity, refineries, coal, cement, natural gas, electricity and fertilizers.

The estimates are based on the growth rate in the first two quarters.

Advance Estimate

The first advance Estimate is based on four main factors namely advance estimates of crop production, Index of Industrial Production IIP (of the months April-October, 2019), financial performances of specific firms in the first and second quarter and accounts of state and central governments.

The second advance estimates will be released after Budget.