Context:

The combined Index of Eight Core Industries (ICI) (BASE: 2011-12=100) increased by 4.0 per cent (provisional) in December 2024 as compared to the Index in December 2023. 

More on the News

• The final growth rate of the Index of Eight Core Industries for September 2024 increased by 2.4 per cent. 
•  The cumulative growth rate of ICI from April to December 2024-25 is 4.2 per cent (provisional) as compared to the corresponding period of last year.

Industry-wise Highlights of ICI:

1. Coal production (weightage: - 10.33%) increased by 5.3 per cent in December 2024 over December 2023. 

2. Crude Oil production (8.98%) increased by 0.6 per cent in December 2024 over December 2023. 

3. Natural Gas production (6.88%) declined by 1.8 per cent in December 2024 over December 2023. 

4. Petroleum Refinery production (28.04%) increased by 2.8 per cent in December 2024 over December 2023. 

5. Fertilizer production (2.63%) increased by 1.7 per cent in December 2024 over December 2023. 

6. Steel production (17.92%) increased by 5.1 per cent in December 2024 over December 2023. 

7. Cement production (5.37%) increased by 4.0 per cent in December 2024 over December 2023. 

8. Electricity generation (19.85%) increased by 5.1 per cent in December 2024 over December 2023. 

About ICI

• The ICI measures the combined and individual performance of the production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
• Eight Core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
• ICI is released by the Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), and Ministry of Commerce & Industry on a monthly basis.

Index of Industrial Production (IIP)

• The Central Statistical Organisation (CSO) is responsible for the compilation and publication of the Index of Industrial Production (IIP) since 1950.
• The IIP is compiled as a simple weighted arithmetic mean of production relatives by using Laspeyre’s formula.
• The base year is always given a value of 100. The current base year for the IIP series in India is 2011-12. 
• So, if the current IIP reads as 116 it means that there has been 16% growth compared to the base year.