Core Sector Output

Why in the News?

As per the Ministry of Commerce & Industry, the growth of eight core infrastructure sectors rose by 12.7% in June 2022 against 9.4% in the year-ago period.

Key Points:

About

Eight Core Sectors of Economy:

• The eight core sectors—refinery products, electricity, steel, coal, crude oil, natural gas, cement and fertilizers—comprise 40.27% of the Index of Industrial Production (IIP)

Index of Industrial Production

• The IIP number measures the industrial production for the period under review, usually a month, as against the reference period.
• IIP is a key economic indicator of the manufacturing sector of the economy. 
• There is a lag of six weeks in the publication of the IIP index data after the reference month ends.
•  Base year: 2011-2012

Utility of IIP data:

• IIP data is used for analytical purposes by various government agencies such as the Ministry of Finance, the Reserve Bank of India (RBI), private firms and analysts.
• It is also used to compile the Gross Value Added (GVA) of the manufacturing sector in the Gross Domestic Product (GDP) quarterly basis.