Index of Eight Core Industries register 3.6% growth in May 2018
According to Index of Eight Core Industries released by Ministry of Commerce and Industry, the growth of eight core infrastructure industries has dropped to 10-month low of 3.6% in May 2018 due to decline in production of crude oil and natural gas. This is the lowest growth rate since July 2017 when eight core infrastructure industries had expanded by 2.9%. The growth rate recorded in April 2018 stood higher at 4.6%. In April and May 2018, the eight industries recorded 4.1% growth compared to 3.3% in same period in 2017.
Sector wise breakaway in May 2018
Core industries
Core industries can be defined as main or key industries of the economy. In most countries, these particular industry are backbone of all other industries. In India, there are eight core sectors comprising of coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity. The eight infrastructure sectors, constitute 40.27% of the total index of industrial production (IIP).
Revised weightage in core sectors: Petroleum Refinery production (weight: 28.04%), Electricity generation (19.85%), Steel production (17.92%), Coal production (10.33%), Crude Oil production (8.98%), Natural Gas production (6.88%), Cement production (5.37%), Fertilizers production (2.63%).
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Month: Current Affairs - July, 2018