Core sector growth slows to 5.1%

  1. According to the data released by the commerce and industry ministry, the growth in the eight core sectors has slowed down to 5.1% in May,2019.This growth was lower than the 6.3% seen in April 2019.
  2. The slowdown was led by slow growth in the coal and refinery products sector.However,the strongest performer among the eight sectors was the steel sector.
  3. Core industry can be defined as the main industry which has a multiplier effect on the economy.The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
  4. The Index of Industrial Production (IIP) is an index which details out the growth of various sectors in an economy such as mining,electricity, manufacturing among others.
  5. IIP is compiled and published monthly by the Central Statistical Organisation (CSO) six weeks after the reference month ends.The base year of the IIP has been revised from the year 2004-05 to 2011-12 from April, 2017.
  6. The eight Core Industries in decreasing order of their weightage are(a) Refinery Products (b)Electricity (c)Steel (d)Coal (e)Crude Oil (f)Natural Gas (g)Cement and (h)Fertilizers.

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