Core Sector

Why is it in the news?
  • According to official data released, growth in the core sectors of the economy slowed to 5.1% in May 2019.
  • The slow growth is led by slowing growth in the coal and refinery products sector.
More in the news
    • The Index of Eight Core Industries saw growth slowing in May from the nine-month high of 6.3% registered in April.
    • evertheless, the growth in May is the highest since July 2018, not counting April.
    • Refinery Sector: The slowdown in May was led by the refinery sector, which saw a contraction of 1.5% compared with a growth of 4.3% in the previous month.
    • The coal sector also saw growth slowing to 1.8% from 3.2% over the same period.
    • The crude oil sector witnessed a continued contraction for the eighteenth consecutive month in May.
    • Core Sectors:
      (1) Core industry can be defined as the main industry of the economy.
      (2) In most countries, there is particular industry that seems to be backbone of all other industries and it qualifies to be the core industry.
      (3) In India, there are eight core sectors comprising of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
      (4) The combined index of eight core industries stands at 129.8 in June 2018.
      (5) 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.




    Posted by Jawwad Kazi on 2nd Jul 2019
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