Context:

The combined Index of Eight Core Industries (ICI) rose by 4.3% (provisional) in November 2024 compared to November 2023. 

Key highlights:

This growth reflects positive production trends in Cement, Coal, Steel, Electricity, Refinery Products, and Fertilizers. 

• Final Growth Rate: For August 2024, the ICI declined by 1.5%.
• Cumulative Growth: The cumulative growth of ICI for April-November 2024-25 stands at 4.2% (provisional) compared to the same period last year.

These industries represent 40.27% of the total weight of items included in the Index of Industrial Production (IIP).

Sectoral Performance (November 2024):

What is Core Sector Growth?

• Core sector growth is essentially the growth rate or increase in output/production from the core industries of an economy over a given period. 
• These core industries are vital for the economy and serve as a barometer for the overall industrial performance.

Index of Eight Core Industries (ICI):

The ICI is prepared monthly and reflects the performance of India's industrial sector. 

It includes these components:

• Coal: Excluding coking coal.
• Electricity: From thermal, nuclear, and hydro sources, and imports from Bhutan.
• Crude Oil: Total crude oil production.
• Cement: Production in both large and mini plants.
• Natural Gas: Total production.
• Steel: Production of alloy and non-alloy steel.
• Refinery Products: Total refinery production.
• Fertiliser: Production of various types like urea, ammonium sulphate, and others.

ICI Reporting

• The ICI is prepared every month and released with a time lag of one month (on the last day of month) by the Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), and Ministry of Commerce & Industry.
• The base year for ICI, like the IIP, is currently 2011-12.

Usage of ICI

• The ICI is a crucial tool for policymakers, including the Ministry of Finance, other ministries, banks, the Reserve Bank of India (RBI), and the Railway Board.