Growth of 8 core sector industries slows to 2.6% in April 2019Date: 01 June 2019 Tags: Industries
According to data released by Ministry of Commerce, the combined index of the eight sectors, the growth of 8 core sectors has slowed down to 2.6% in April 2019. The decline in growth was mainly due to negative growth recorded in crude oil, natural gas and fertiliser output along with slump in government spending due to lower than anticipated tax collections. The core sector had recorded growth of 4.9% in March 2019 and 4.7% in April 2018.
Sector wise Performance (April 2019)
- Crude oil output: It shrank by 6.9%
- Fertiliser production: It was down by 4.4%.
- Natural gas output: It contracted by 0.8%.
- Coal production: It rose by 2.8%.
- Electricity production: It rose by 5.8%.
- Refinery products: It rose by 4.3%.
About Index of Eight Core Industries (ICI)
- It is monthly production volume index of eight core industries of the economy. It is considered as lead indicator of monthly industrial performance. Its base year is 2011-12.
- It measures individual as well as collective performance of production in selected eight core industries viz. Petroleum Refinery Products, Natural Gas, Coal, Fertilizers, Crude Oil, Steel, Cement and Electricity.
- These eights industries are main industry of the economy i.e. are considered as backbone of all other industries. They have significant impact on general economic activities as well as industrial activities.
- These eight core sectors constitute 40.27% of total of the weight of items included Index of Industrial Production (IIP).
- Compiled and released by: Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (earlier DIPP), Ministry of Commerce & Industry.
- Components and weightages of core sectors: Petroleum Refinery production (weight: 28.04), electricity generation (9.85), Steel production (17.92), Coal production (10.33), Crude Oil production (8.98), Natural Gas production (6,88), Cement production (5.37) and Fertilizers production (2.63).
- Note: Highest weightage is for Petroleum Refinery production (weight: 28.04) and lowest is for Fertilizers production (2.63).