Previous Year Question

The Eight Core Industries are basic industries whose output directly influences energy, construction, transportation, agriculture and several other industrial activities.

At the time relevant to the question, the Eight Core Industries had a combined weight of 37.90% in the Index of Industrial Production. This figure related to the older IIP series with 2004-05 as the base year.

The Eight Core Industries are:

1. Coal

2. Crude oil

3. Natural gas

4. Refinery products

5. Fertilisers

6. Steel

7. Cement

8. Electricity

Examination of the listed industries:

• Cement—Included: It is an essential input for buildings, roads, dams and other construction activities.

• Fertilisers—Included: Fertilisers are directly connected with agricultural production and food security.

• Natural gas—Included: It is used as an input in energy, power, fertiliser and petrochemical industries.

• Refinery products—Included: Petrol, diesel, ATF, LPG and naphtha are critical to transportation and industry.

• Textiles—Not included: Textiles are an important manufacturing industry but are not one of the Eight Core Industries.

Therefore, items 1, 2, 3 and 4 are correct.

Present base-year fact: The new IIP series uses 2011-12 as the base year. Under this series, the combined weight of the Eight Core Industries in IIP is 40.27%. The 37.90% mentioned in the question was correct for the earlier series.

The approximate inter-se weights within the present Eight Core Industries Index are:

• Refinery products—28.04%

• Electricity—19.85%

• Steel—17.92%

• Coal—10.33%

• Crude oil—8.98%

• Natural gas—6.88%

• Cement—5.37%

• Fertilisers—2.63%

These are weights within the Eight Core Industries Index; their combined weight in IIP is 40.27%.