Core sector output falls 5.2% in September

News:The output of eight core infrastructure industries has decreased by 5.2% in September,2019 indicating the severity of the economic slowdown.


  • All sectors in the core index with the exception of fertilisers has seen a contraction in September,2019.
  • The experts have blamed consumption slowdown, heavy rainfall and flooding in several states as the prime reasons for the contraction.
  • They have also said that the sharp contraction also showed the severity of the industrial slowdown and recovery may take time. 
  • To lift growth,government has also taken several measures such as (a)slashing corporate tax rates (b)infusing capital in banks (c)relaxing foreign direct investment limits for select sectors (d)supporting real estate and (e)providing liquidity for non banking finance companies.

About Core Sector:

  • Core sector 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).
  • 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.

Additional information:

About IIP:

  • The Index of Industrial Production (IIP) is a composite indicator that measures changes in the volume of production of a basket of industrial products.
  • The index is compiled and published monthly by the Central Statistical Organisation (CSO),Ministry of Statistics and Programme.
  • It is implemented six weeks after the reference month ends, i.e a lag of six weeks.
  • The Base Year of the Index of Eight Core Industries has been revised from the year 2004-05 to 2011-12 from April, 2017.