From UPSC perspective, the following things are important :
Prelims level : Core Sector Industries
Mains level : Core sector industries and their impacts
The Office of Economic Advisor within the Department for Promotion of Industry and Internal Trade (DPIIT) has released the Index of Eight Core Industries (ICI) for September 2020.
Try this PYQ:
Q.In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?
(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production
What is the Index of Core Industries?
- As the title suggests, this is an index of the eight most fundamental industrial sectors of the Indian economy and it maps the volume of production in these industries.
- It gives the details of these eight sectors — namely Coal, Natural Gas, Crude Oil, Refinery Products (such as Petrol and Diesel), Fertilizers, Steel, Cement and Electricity.
- Since these eight industries are the essential “basic” and/or “intermediate” ingredient in the functioning of the broader economy, mapping their health provides a fundamental understanding of the state of the economy.
- In other words, if these eight industries are not growing fast enough, the rest of the economy is unlikely to either.
ICI this year
- This data is to focus on the trend of ICI growth over the past 6 months — that is, since the start of the Covid-19 pandemic and associated lockdowns.
- A crucial factor in this regard would be the next wave of Covid-19 infections.
- If there is a surge in the winter months — as is being witnessed in most Europe and the US — then India’s recovery will be dented yet again.