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NEWS IMPULSE – INDEX OF EIGHT CORE INDUSTRIES FOR OCTOBER 2020| 28 NOVEMBER

/ UPSC Daily Current Affairs, November

Syllabus Section: Economy& Related Issues/ Reports & Indiices.

 

WHY IN NEWS?

The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (Ministry of commerce & Industry) has released Index of Eight Core Industries for the Month of October, 2020.

KEY FINDINGS

• The combined Index of Eight Core Industries stood at 124.2 in October,2020, which declined by 2.5 (provisional) per cent as compared to the Index of October, 2019.Its cumulative growth during April to October, 2020-21 has been(-) 13.0%.

• Final growth rate of Index of Eight Core Industries for July’2020 is revised to(-) 7.6%. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

• Monthly growth rates of Index of Eight Core Industries (Overall) is depicted in the graph:

 

The summary of the Index of Eight Core Industries is given below:

1. Coal- Coal production (weight: 10.33per cent) increased by 11.6 per cent in October, 2020 over October, 2019. Its cumulative index declined by 3.6per cent during April to October, 2020-21over corresponding period of the previous year.

2. Crude Oil-Crude Oil production (weight: 8.98per cent) declined by 6.2 per cent in October, 2020 over October, 2019. Its cumulative index declined by 6.1 per cent during April to October, 2020-21over the corresponding period of previous year.

3. Natural Gas- The Natural Gas production (weight:6.88per cent) declinedby8.6 per cent in October, 2020 over October,2019. Its cumulative index declined by 12.5 per cent during April to October, 2020-21 over the corresponding period of previous year.

4. Refinery Products- Petroleum Refinery production (weight: 28.04per cent) declined by17.0 per cent in October, 2020 over October, 2019. Its cumulative index declined by 16.4per cent during April to October, 2020-21over the corresponding period of previous year.

5. Fertilizers-Fertilizers production (weight: 2.63 per cent) increased by 6.3 per cent in October, 2020 overOctober,2019. Its cumulative index increased by 4.1 per cent during April to October, 2020-21 over the corresponding period of previous year.

6. Steel-Steel production (weight: 17.92per cent) declined by 2.7 per cent in October, 2020 over October, 2019. Its cumulative index declined by 22.8percent during April to October, 2020-21 over the corresponding period of previous year.

7. Cement-Cement production (weight:5.37per cent) increasedby2.8per cent in October, 2020overOctober,2019. Its cumulative index declinedby21.3 percent during April to October, 2020-21over the corresponding period of previous year.

8. Electricity- Electricity generation (weight:19.85per cent) increasedby10.5percent in October,2020over October,2019. Its cumulative index declined by 5.6percent during April to October, 2020-21over the corresponding period of previous year.

ABOUT CORE SECTOR INDUSTRIES

• The eight core sector industries include coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity.

• The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

• The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.

 

Source: PIB.