Core sector

  • August 1, 2020
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Subject: Economy

Context:

The output of eight core sector industries shrank for the fourth straight month in June 2020 but contraction eased to 15% from 22% fall in May

Concept:

  • Core industry can be defined as the main industry which has a multiplier effect on the economy.
  • In most countries, there is particular industry that seems to be backbone of all other industries and it qualifies to be the core industry.
  • The eight Core Industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
  • The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Core sector economy