refinery products Current Affairs - 2020
According to official data released by Government, Growth of eight core industries (Index of Eight Core Industries) dropped to 2.1% in July 2019. It was mainly due to contraction in coal, crude oil, natural gas and refinery products. These eight sectors had expanded by 7.3% in July 2018. Moreover, it has declined by 6.2% during April to July, 2019-20 over the corresponding period of previous year.
Sector wise breakaway (July 2019)
Index of Eight Core Industries
It is monthly production index, which is also considered as lead indicator of the monthly industrial performance. It contains production and growth figures of eight core industries viz. steel, electricity, crude oil, refinery products, coal, cement, natural gas and fertilizers. It is compiled by Central Statistic Organisation (CSO) under Union Ministry of Commerce and Industry based on monthly production information received from source agencies. These core industries are considered as main or key industries of the economy and serve as backbone of all other industries
Weightage: 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%
Relation with index of industrial production (IIP): These eight core sectors constitute 40.27% of IIP.
The data concerned with slowdown in growth of eight core sector comes days after India’s GDP growth rate slowed to 6-year low of 5% for first quarter of FY 2019-20. It was down from 5.8% in fourth quarter of FY 2018-19. In first quarter of the previous financial year, GDP growth was 8.2%. This effectively means that India’s growth rate has fallen by 3% in barely a year’s time. This is fourth successive decline in GDP, from 8% in 1st quarter of FY19 to 5% in this quarter. It is also the slowest growth since Q1 in 2013.
Tags: Coal • crude oil • Economic Slowdown • Eight core sectors • IIP
The output from the eight core sectors which include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity witnessed a growth of 2.1 per cent in February, compared to the corresponding month last year as per the data from the Ministry of Commerce and Industries.
How Core Industries Performed?
- The production of cement (weight: 5.37%) grew at 8%, the most of all core industries.
- Coal (weight: 10.33%) production rose by 7.3%.
- Crude oil (weight: 8.98%) output increased by 6.1%.
- Steel production (weight: 17.92%) increased by 4.9%.
- Natural gas (weight: 6.88%) production increased by 3.8%.
- Fertilisers (weight: 2.63%) production increased by 2.5%.
- Electricity production increased by 0.7%.
- The output of refinery products (weight: 28.04%) declined by 0.8% in February.
The combined Index of Eight Core Industries stood at 125.8 in February 2019 and it was 2.1 per cent higher as compared to the index of February 2018. The cumulative growth of the core industries during April to February 2018-19 was 4.3 per cent.