Index of Eight Core Industries

Why in news?

The Central Statistical Office has released the contribution of 8 core industries in the Index of Industrial Production for the previous month.



In India, IIP is a representative figure which measures the general level of Industrial activity in the country. Being an abstract number, it does not show volume of activity and only shows the magnitude which represents the status of production in the industrial sector for a given period of time as compared to a reference period of time.


An Interim Index of Industrial Production was released from 1947, based upon 15 industries and with base year 1937. It was discontinued in 1949.  The First IIP was published in 1950 by Office of Economic Advisor, Ministry of Commerce with base year 1937.  The base year was later shifted from time to time. Currently IIP data is released every month by CSO (Central Statistical Office) which was set up in 1951. Current IIP Base year is 2011-12.


The new series of IIP will include 809 manufacturing products and 55 mining products that are re-grouped into 521 item groups.

Eight core industries– Coal, Crude Oil, Natural Gas, Refinery Product, Steel, Cement and Electricity are known as Core Industries. The eight Core Industries comprise nearly 37.9 % of the weight of items included in the Index of Industrial Production (IIP). The 8 core industries are their relative weight in IIP is as below:

Coal (weight: 4.38 %).

Crude Oil (weight: 5.22 %).

Natural Gas (weight: 1.71 %).

Refinery Products (weight: 5.94%).

Fertilizers (weight: 1.25%).

Steel (weight: 6.68%).

Cement (weight: 2.41%).

Electricity (weight: 10.32%)