Context:
The ICI increased by 5.2% (provisional) in March 2024 compared to March 2023.
Key findings:
- The ICI measures the combined and individual performance of production of eight core industries annually and monthly.
- In March, India’s eight core infrastructure sectors saw a growth moderation to 5.2% from 7.1% in February.
- High growth in Cement and Electricity production was countered by contractions in fertilisers and refinery products.
- This growth follows a 6.7% increase in growth reported in February 2024 compared to February 2023.
- Infrastructure sectors’ growth slowed to 5.2% in March from a growth of 7.1% in February.
- Full-year growth for 2023-24 hit a three-year low at 7.5%, compared with 7.8% in 2022-23.
- All eight sectors experienced annual growth for the first time in at least 12 years, led by double-digit upticks in steel and coal.
Eight Core Industries (ECI)
- The Eight Core Industries are crucial sectors forming the backbone of the Indian economy.
- The Eight Core Industries represent 40.27 percent of the total weight of items incorporated in the Index of Industrial Production (IIP).
- Their performance significantly impacts overall industrial activity and economic growth.
List of Eight Core Industries:
- Coal: Primary fuel for power generation and various industrial processes.
- Crude Oil: Raw material for refined petroleum products (gasoline, diesel, LPG).
- Natural Gas: Cleaner-burning fuel for power generation and industrial applications.
- Refinery Products: Processed petroleum products for transportation and other sectors.
- Fertilizers: Essential for agricultural productivity and food security.
- Steel: The foundation of infrastructure development (construction, manufacturing, transportation).
- Cement: Primary building material for construction activities.
- Electricity: Powers homes, industries, and critical infrastructure.
Index of Industrial Production (IIP)
- Purpose: Tracks growth in sectors like mining, electricity, and manufacturing.
- Indicator: Provides short-term growth insights until comprehensive data are available.
- Base Year: 2011-12.
- Released By: Central Statistics Office (CSO) under the Ministry of Statistics and Programme Impl
Importance of ECI:
- Growth Indicator: The ICI’s performance reflects the health of the industrial sector. Growth signifies increased industrial activity and economic expansion.
- Infrastructure Development: These industries provide building blocks for infrastructure development impacting transportation, energy, and communication.
- Employment Generation: These sectors are significant employers, contributing to job creation and economic well-being.
Index of Eight Core Industries (ICI):
- Every month, the Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), and Ministry of Commerce & Industry prepare and release the ICI.
- Tracks the collective and individual performance of these eight sectors.
- Provides insights into production trends and growth patterns.