Core sector

Subject: Economy

Context:

According to data released by the Commerce and Industry Ministry, ‘fertiliser’ was the only core sector industry to record an increase in July at 6.9 per cent (1.5 per cent in July 2019).

Concept:

• All the other segments reported a contraction in July — steel (-16.4 per cent), refinery products (-13.9 per cent), cement (-13.5 per cent), natural gas (-10.2 per cent), coal (-5.7 per cent), crude oil (-4.9 per cent) and electricity (-2.3 per cent).
• The eight core industries included are- Coal, Crude oil, Natural Gas, Petroleum refinery products, Fertilizer, Cement, Steel, and Electricity generation.
• These eight industries comprise 40.27% of the weight of the items included in the Index of Industrial Production.
• These industries have a major impact on general economic activities and also industrial activities. They significantly impact most other industries as well. The core sector represents the capital base of the economy