Index of Eight Core Industries

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The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade released the Index of Eight Core Industries for the Month of March, 2021.

Major Highlights

• The combined Index of Eight Core Industries stood at 143.1 in March, 2021, which increased by 6.8 (provisional) per cent as compared to the Index of March, 2020.
• The cumulative growth during April to March, 2020-21 has been (-) 7.0%.
• Summary of the Index of Eight Core Industries
  • Coal: Coal production (weight: 10.33 per cent) declined by 21.9 per cent in March, 2021 over March, 2020.
    • Its cumulative index declined by 4.8 per cent during April to March, 2020-21 over the corresponding period of the previous year.
  • Crude Oil: The Crude Oil production (weight: 8.98 per cent) declined by 3.1 per cent in March, 2021 over March, 2020.
    • Its cumulative index declined by 5.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
  • Natural Gas: The Natural Gas production (weight: 6.88 per cent) increased by 12.3 per cent in March, 2021 over March, 2020.
    • Its cumulative index declined by 8.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
  • Petroleum Refinery Products: The Petroleum Refinery production (weight: 28.04 per cent) declined by 0.7 per cent in March, 2021 over March, 2020.
    • Its cumulative index declined by 11.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
  • Fertilizers: The fertilizers production (weight: 2.63 per cent) declined by 5.0 per cent in March, 2021 over March, 2020.
    • Its cumulative index increased by 1.8 per cent during April to March, 2020-21 over the corresponding period of previous year.
  • Steel: The steel production (weight: 17.92 per cent) increased by 23.0 per cent in March, 2021 over March, 2020.
    • Its cumulative index declined by 9.5 per cent during April to March, 2020-21 over the corresponding period of previous year.
  • Cement: The cement production (weight: 5.37 per cent) increased by 32.5 per cent in March, 2021 over March, 2020.
    • Its cumulative index declined by 11.9 per cent during April to March, 2020-21 over the corresponding period of previous year.
  • Electricity: The electricity generation (weight: 19.85 per cent) increased by 21.6 per cent in March, 2021 over March, 2020.
    • Its cumulative index declined by 0.6 per cent during April to March, 2020-21 over the corresponding period of previous year.

About  Index of Eight Core Industries

• The Index of Eight Core Industries captures the output of coal, crude oil, natural gas, steel, cement, fertilisers, electricity, and refinery products. 
  • These core industries are considered as main or key industries of the economy and serve as the backbone of all other industries.
• The index has a 40.27% weight in the Index of Industrial Production (IIP), suggesting a sharp contraction in that indicator.
• The base year of the index has been revised to 2011-12 from 2004-05 in alignment with the new series of IIP.

Source: BS