Eight core sectors grow by 5.1% in May 2019Date: 02 July 2019 Tags: Industries, Infrastructure
According to data released by Ministry of Commerce, the eight core sector industries recorded a growth of 5.1% May 2019 on the back of healthy output in steel and electricity. These eight core sectors had expanded by 4.1% in May 2018. During April-May 2019, the cumulative growth of these industries, was 5.7% compared to 4.4% during the same period last year. The growth rate for index of eight core industries (ICI) for April 2019 also has been revised upward to 6.3% from 2.6% due to upward revisions in output of coal, crude oil, steel, cement and electricity.
Sector wise Performance (May 2019)
- Crude oil output: It declined by (-) 6.9%.%
- Fertiliser production: It declined by (-) 1.0%.%
- Coal production: It recorded growth of 1.8%.
- Electricity production: It recorded 7.2% growth (highest in last six months, i.e. since November 2018).
- Refinery products: It declined by (-) 1.5%.%
- Steel Sector: It record double digit growth of 19.9%.
- Cement Sector: It recorded moderate growth of 2.8%.
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.
- 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). These eight core sectors constitute 40.27% of total of the weight of items included Index of Industrial Production (IIP).