Daily Current Affairs : 2-January-2025
The Combined Index of Eight Core Industries (ICI) recorded a growth of 4.3% in November 2024 compared to November 2023. This growth is significant as it highlights the performance of the key sectors that form the backbone of the Indian economy. The ICI measures the production levels of eight core industries, which include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. Together, these industries play a crucial role in India’s industrial performance.
Core Industries in the ICI
The eight core industries covered by the ICI have a combined weight of 40.27% in the Index of Industrial Production (IIP). The IIP measures the short-term changes in production volumes in key economic sectors such as mining, electricity, and manufacturing. The ICI thus serves as an important indicator of economic health. Here’s a breakdown of the growth performance of each core sector in November 2024:
- Refinery Products: 28.04% weight, 2.90% growth
- Electricity: 19.85% weight, 3.80% growth
- Steel: 17.92% weight, 4.80% growth
- Coal: 10.33% weight, 7.50% growth
- Crude Oil: 8.98% weight, -2.10% decline
- Natural Gas: 6.88% weight, -1.90% decline
- Cement: 5.37% weight, 13.00% growth
- Fertilizers: 2.63% weight, 2.00% growth
Significance of IIP and ICI
The Index of Industrial Production (IIP) is an important economic tool that measures production changes in critical sectors. It is published by the Central Statistical Organisation (CSO) every month and provides data with a six-week lag. The data reflects production changes compared to the base year (2011-2012). The ICI, being a part of the IIP, gives us a clear idea about the performance of industries that contribute significantly to the Indian economy.
Important Points:
- 4.3% growth in the Combined Index of Eight Core Industries (ICI) in November 2024 compared to November 2023.
- The ICI measures the performance of eight key sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
- These eight sectors have a combined weight of 40.27% in the Index of Industrial Production (IIP).
- Performance of individual sectors in November 2024:
- Coal: 7.50% growth
- Steel: 4.80% growth
- Cement: 13.00% growth
- Electricity: 3.80% growth
- Refinery Products: 2.90% growth
- Fertilizers: 2.00% growth
- Crude Oil: -2.10% decline
- Natural Gas: -1.90% decline
- The Index of Industrial Production (IIP) tracks short-term production changes across mining, electricity, and manufacturing sectors in India.
- The IIP is published monthly by the Central Statistical Organisation (CSO) and reflects changes in production compared to the base year (2011-2012).
Why In News
The combined Index of Eight Core Industries (ICI) recorded a 4.3% growth in November 2024 compared to November 2023, indicating a positive trend in the performance of key industrial sectors, which are essential drivers of India’s economy.
MCQs about Growth in Core Industries Signals Positive Economic Outlook for India
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Which of the following core industries has the highest weight in the Combined Index of Eight Core Industries (ICI)?
A. Coal
B. Steel
C. Refinery Products
D. Electricity
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What is the weight of the Electricity sector in the Combined Index of Eight Core Industries (ICI)?
A. 10.33%
B. 28.04%
C. 19.85%
D. 6.88%
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Which of the following sectors recorded a decline in growth in November 2024?
A. Coal
B. Fertilizers
C. Steel
D. Crude Oil
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Which organization publishes the Index of Industrial Production (IIP), which includes data for the Eight Core Industries?
A. Ministry of Finance
B. Central Statistical Organisation (CSO)
C. Reserve Bank of India
D. Ministry of Commerce and Industry
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