Index of Eight Core Industries

Q. With reference to Index of Eight Core Industries (ICI), consider the following statements:

1. The Eight Core Industries comprise 60 percent of the weight of items included in the Index of Industrial Production (IIP).
2. It is prepared by the Central Statistical Office, Ministry of Statistics and Program Implementation.
3. Electricity generation is given the highest weightage in the ICI.

How many of the above statements is/are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Answer: (d)

Explanation:

About Index of Eight Core Industries (ICI):

• • ICI measures combined and individual performance of production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement and Electricity. 

• The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). (Statement 1 is incorrect)

• It is noted that the Index of Industrial production (IIP) is published by CSO, Ministry of Statistics and Program implementation while Index of Eight core Industries is published by Office of Economic Advisor, Ministry of Commerce and Industry. (Statement 2 is incorrect)
• Sector: Weightage in %
  • Petroleum Refinery production: 28.04% (Statement 3 is incorrect)
  • 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%
  • Fertilisers production: 2.63%