• UGI USER
  • Mar 29, 2024
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CORE SECTOR OUTPUT GROWTH SPURTS TO 6.7% IN FEBRUARY:

Why in the news?

Core sector output in India surged by 6.7% in February, led by notable growth in coal, natural gas, and cement industries.

source:TH

Key Highlights of the Core Sector Output Growth:

  • India’s eight core sectors witnessed a significant growth spurt of 6.7% in February, reaching a three-month high.
  • Double-digit increases in coal, natural gas, and cement industries were notable contributors to this growth.
  • However, fertilisers’ production experienced a sharp decline of 9.5%, marking the steepest contraction since May 2021.
  • January’s Index of Core Industries (ICI) was revised to a 4.1% rise, the slowest growth in 15 months.
  • Fertilisers’ output declined for the second consecutive month, the first such streak in two years.
  • Crude oil production saw an all-time high growth of 7.9%, aided by base effects, while natural gas output grew by 11.3%, the highest in two years.
About Eight core sectors:

●   Importance:

●   Eight core sectors contribute significantly to India’s industrial production, constituting 40.27% of the weight in the Index of Industrial Production (IIP).

●   Composition:

●   The core sectors, ranked by their weightage in the IIP, are: Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement, and Fertilisers.

About Index of Industrial Production:

●   Definition:

●   IIP measures changes in industrial product volume over time, indicating industrial production trends.

●   Publisher:

●   Compiled and released monthly by the Central Statistical Organization (CSO), under the Ministry of Statistics and Programme Implementation.

●   Classification:

●   It categorises industries into broad sectors (Mining, Manufacturing, Electricity) and use-based sectors (Basic Goods, Capital Goods, Intermediate Goods).

●   Base Year:

●   Base year for IIP calculation is 2011-2012.