Question 62 from UPSC CSE 2015 - Economy

Question

In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

IASCODEX · Accepted Answer

Correct Option: B. Electricity generation

Strategy: Identify the sector with the highest weight in the Index of Eight Core Industries. The answer is electricity generation, based on its broad infrastructure importance and output.

Key Info: The Index of Eight Core Industries (ECI) is a monthly index from India's Ministry of Commerce and Industry. It measures the output growth of eight key infrastructure industries, which together constitute about 40% of the Index of Industrial Production (IIP).

**The eight core industries are:**
- Coal
- Crude Oil
- Natural Gas
- Refinery Products
- Fertilizers
- Steel
- Cement
- Electricity

Each industry is assigned a weight based on its importance to industrial production. According to the 2011-12 base year, electricity generation has the highest weight at 10.32%. This is followed by refinery products at 28.04%. The ECI acts as a lead indicator for industrial performance in India. Electricity's significant weight reflects its cross-sectoral role in powering manufacturing, services, and agriculture. Consequently, the core sector's performance heavily influences IIP trends and industrial policy decisions.

IASCODEX · Answer

Option A: Coal production

IASCODEX · Answer

Option C: Fertilizer production

IASCODEX · Answer

Option D: Steel production