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Core sectors record 2.1% growth in February 2019

Date: 02 April 2019 Tags: Industries

According to data released by Ministry of Commerce, the combined index of the eight sectors recorded 2.1% growth in February 2019. Its dismal show in February 2019 was on account of fall in output registered in the crude oil and refinery products.

Its cumulative growth during April to February 2018-19 was 4.3%. These eight sectors had recorded had growth of 5.4% in February 2018.

Sector wise breakaway

  • Coal production: It grew by 7.3% in February 2019 against 1.3% growth in the same period a year ago.
  • Steel production: It recorded 17.92% growth  as against 5% growth in the same period a year ago.
  • Natural gas production: It grew by 3.8%.
  • Fertilizers Sector: It grew by 2.5%.
  • Cement production: It grew by 8%.
  • Electricity production: It grew by 0.7%, falling from 4.6% growth in February 2018.
  • Production of crude oil: It recorded -6.1% growth.
  • Refinery products: It recorded -0.8% growth.

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.
  • It is compiled and released by Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (earlier DIPP), Ministry of Commerce & Industry.
  • These eight core sectors constitute 40.27% of total of the weight of items included Index of Industrial Production (IIP).
  • 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%).