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Core sector
Why is it in the news
- As per official data released, Core sector growth accelerated in February to 2.11% from the 1.5% in January.
- However, the growth of 2.1 per cent in February is lower when compare to 5.4 per cent in February 2018.
More in the news
- The sectors that saw strong growth in February include cement and coal.
- The cement sector saw growth at 8.04% in February, although this was still lower than the 11% growth in the previous month.
- The coal sector witnessed growth accelerating in February to 7.26% from 1.74% in January.
- The crude oil sector contracted sharply in February, by 6.16%, compared with a contraction of 4.37% in January.
- The natural gas sector saw growth slowing to 3.7% from 6.21% over the same period.
- Core sector data having 40.27% weight in the Index of Industrial Production (IIP) once again.
- Core Sectors:
- Core industry can be defined as the main industry of 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.
- In India, there are eight core sectors comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
- The combined index of eight core industries stands at 129.8 in June 2018.
- The electricity has the maximum weight of 10.32% followed by Steel (6.68%), Petroleum Refinery (5.94%) with Fertilizer production (1.25%) having lowest weight.
Source
The Hindu.