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:

  1. Coal: Primary fuel for power generation and various industrial processes.
  2. Crude Oil: Raw material for refined petroleum products (gasoline, diesel, LPG).
  3. Natural Gas: Cleaner-burning fuel for power generation and industrial applications.
  4. Refinery Products: Processed petroleum products for transportation and other sectors.
  5. Fertilizers: Essential for agricultural productivity and food security.
  6. Steel: The foundation of infrastructure development (construction, manufacturing, transportation).
  7. Cement: Primary building material for construction activities.
  8. 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.
  1. 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.

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