EDEN IAS

core sector output expands

UPSC CURRENT AFFAIRS | CORE SECTOR OUTPUT EXPANDS BY 12.7% IN JUNE | 30TH JULY | THE HINDU

SYLLABUS SECTION: GS III (ECONOMY)

WHY IN NEWS?

India’s eight core sector output expands growth moderates to 12.7% in June from 18.1% in May, with all sectors except crude oil registering an uptick in production.

INDEX OF INDUSTRIAL PRODUCTION (IIP).

  • The eight core sector industries in decreasing order of their weightage:
  • Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
  • IIP is an indicator that measures the changes in the volume of production of industrial products during a given period.
  • It is compiles and publish monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Program Implementation.
  • It is a composite indicator that measures the growth rate of industry groups classify under:
  • Base Year for IIP is 2011-2012 in CORE SECTOR OUTPUT EXPANDS.
  1. Broad sectors, namely, Mining, Manufacturing and Electricity
  2. Use-base sectors, namely Basic Goods, Capital Goods and Intermediate Goods.
  • Currently IIP figures are calculate considering 2004-05 as base year.

SIGNIFICANCE OF IIP:

  • It is use by government agencies including the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes.
  • IIP remains extremely relevant for the calculation of the quarterly and advance GDP (Gross Domestic Product) estimates.
IIP vs ASI
  • While the IIP is a monthly indicator, the Annual Survey of Industries (ASI) is the prime source of long-term industrial statistics.
  • The ASI is use to track the health of the industrial activity in the economy over a longer period. The index is compiled out of a much larger sample of industries compared to IIP.

Read more: UPSC CURRENT AFFAIRS

SOURCE: THE HINDU

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