As per the recent release by the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade the growth rate of Index of Eight Core Industries for July 2021 increased by 9.4% (provisional).
The combined Index of Eight Core Industries stood at 134.0 in July 2021, which increased by 9.4% (provisional) as compared to the Index of July 2020. Its cumulative growth during April to July 2021-22 has been 21.2% (P) as compared to to the corresponding period of last FY.
The month over month production of eight core industries, as captured by ICI, improved by 5.42% (P) in July 2021 compared to June 2021 (P) due to emergence of second wave of infectious COVID-19.
Eight Core Industries
The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. These are called core industries because of their likely impact on general economic activity as well as other industrial activity.
The Index of Eight Core Industries (ICI)
The monthly Index of Eight Core Industries (ICI) is a production volume index. ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
The Index is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry.
The inter-se weights of these eight industries are largely in alignment with the respective weight of these industries in the Index of Industrial Production (IIP).
The base year of the ICI has been revised to 2011-12 from 2004-05 in alignment with the new series of IIP. Combined weight of these eight core industries is 40.27 percent of IIP with base 2011-12. The Index is calculated by using the Laspeyre’s formula of weighted arithmetic mean of quantity relatives.
ICI for a reference month is released with a time lag of one month on last day of the next month, which is about twelve days prior to the release of IIP for the reference month. The monthly index is released on the last working day of every month at 5.00 P.M. If last day happens to be a holiday then it is released on the first working day of the next month. The index is released through Press Information Bureau (PIB) as well as on website of the Office of the Economic Adviser.
Eight Core Industries and their weightage in index are:
| S. No | Industry | Percentage |
|---|---|---|
| 1 | Coal | 10.33% |
| 2 | Natural Gas | 8.98% |
| 3 | Crude Oil production | 6.88% |
| 4 | Petroleum Refinery | 28.04% |
| 5 | Fertilizers | 2.63% |
| 6 | Steel | 17.92% |
| 7 | Cement production | 5.37% |
| 8 | Electricity generation | 19.85% |
| Total | 100% |
ICI for April 2021
As per the recent release by the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade the growth rate of Index of Eight Core Industries for for July 2021 increased by 9.4% (provisional).
