1 January 2025 : PIB Summary For UPSC

Prelims Facts:

1. INDEX OF EIGHT CORE INDUSTRIES (BASE: 2011-12=100) FOR NOVEMBER, 2024

(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2089066&reg=3&lang=1 )

Context

The Index of Eight Core Industries grew by 4.3% in November 2024, with Cement, Coal, and Steel showing growth, while Crude Oil and Natural Gas declined.

Index of Eight Core Industries:

Overview

• The ICI measures the combined and individual performance of eight core industries that form the backbone of India’s industrial economy.
• These industries are Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
• The eight core industries collectively hold a 40.27% weight in the Index of Industrial Production (IIP).

Components and Their Weights

Monitoring:

• The Office of the Economic Adviser (OEA) under the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry compiles and releases the ICI monthly.

Base Year:

• The base year for the ICI is 2011-12.

Data Sources:

• Production data for each industry is sourced from respective government agencies.

Purpose

• Tracks industrial performance for economic planning and policy formulation.
• Provides insights into trends and growth patterns of key sectors.
• The ICI provides valuable insights into the performance of key sectors, aiding policymakers in economic decision-making.

Index of Industrial Production (IIP):

The Index of Industrial Production (IIP) measures the growth rate of various sectors in an economy, such as manufacturing, mining, and electricity. It is released monthly by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation. The base year for calculating IIP is 2011-12. IIP uses a weightage system: manufacturing (77.63%), mining (14.37%), and electricity (7.99%). It is an essential indicator of industrial performance and overall economic activity.