Core Sectors of Indian Economy, Details, Eight Core Sectors

Core Sectors of Indian Economy

The main or core industries that make up the Indian economy are called core sectors. The eight industries that are considered to be the Core Sectors of our nation are crude oil, coal, natural gas, refinery products, steel, fertilisers, cement, and electricity were chosen as the eight core industries by the Index of Eight Core Industries (ICI), which also designated these industries as the nation’s primary industrial sectors. To improve your preparation for the UPSC prelims and mains examination, read the article below for more information about Core Sectors.

Core Sectors of Indian Economy in Details

Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity are all part of India’s core sector. The weight of its components in the Index of Industrial Production (IIP) is 40.27 percent. The primary or significant industries make up the core sectors of an economy. India’s eight primary industries are regarded as its main industries. The eight major sectors of the Indian economy are steel, cement, natural gas, crude oil, coal, cement, and fertilisers. The index is compiled and published by the Office of the Economic Adviser (OEA), Department of Industrial Policy and Promotion (DIPP), and Ministry of Commerce and Industry.

The core sector is the key industry that has a multiplier effect on the economy. In most nations, the core industry is the one that underpins all other industries. Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and power are some of India’s main businesses. The index of 40.27% (IIP) makes up the weight of the various components in the Index of Industrial Production.

The performance of the eight core industries—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and power—is assessed in both aggregate and individual production terms by the Index of Key Industries. All other industries are built on the strength of these sectors. These industries’ current-year production is calculated using the 2011-2012 base year.

Core Sectors of Indian Economy Updates in Recent Years

India’s eight major industries expanded by 18.1% in May 2022 as opposed to 8.4% in April. In August 2022, fertiliser production climbed by 11.9% compared to a 3.1% decline in the same month the previous year. Growth rates for coal, refinery products, steel, cement, and power all fell to 7.6%, 7.6%, 2.2 percent, and 1.8 percent, respectively.

When compared to August 2021, coal production (weight: 10.33%) grew by 7.6% in 2022. The overall Index of the Eight Core Industries increased in September 2022 by a (provisional) 7.9 percent as compared to the Index of September 2021. Compared to the same month the year before, manufacturing of steel, power, coal, fertilisers, cement, and industries producing refinery products increased in September 2022.

Eight Core Sectors of Indian Economy List

The weight of these sectors in the Index of Industrial Production (IIP) is 40.27%, making them the most significant economic sectors. The Office of the Economic Adviser (OEA), the Department for Promotion of Industry and Internal Trade (DPIIT), and the Ministry of Commerce & Industry produce the Index of Eight Core Industries (ICI) each month. The Indian economy’s core industries are comprised of the eight sectors listed below:

• Production of coal, excluding coking coal.
• Electricity: Bhutan imports electricity and produces it using nuclear, hydro, and thermal energy.
• Crude Oil: Total production of crude oil.
• Production of cement in both large and small operations.
• Natural Gas: Total natural gas production.
• Steel: Only non-alloy and alloy steel are produced.
• Refinery Products: Total output of the refinery.
• Fertiliser, including single superphosphate, urea, ammonium sulphate, calcium ammonium nitrate, and complex grade fertiliser.

Refinery Products are followed by Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement, and Fertilisers, in decreasing order of weight.

Core Sectors of Indian Economy UPSC

The fundamental or key industries that make up the Indian economy are known as its core sectors. Eight industries are regarded as the Core Sectors of our nation. Additionally, the Index of Eight Core Industries (ICI) chose the following eight core industries as the nation’s primary industrial sectors: crude oil, coal, natural gas, refinery products, steel, fertilisers, cement, and electricity.

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