Core sectors of economy
“Through hard work and education, we can deliver a strong economy and opportunity for all.”
-Julia Gillard
Indian economy has been divided in various sectors to help in analyzing the economic activity within similar business activities. There are basically four sectors:
• Primary
• Secondary
• Tertiary
• Quaternary
Under the secondary sector we get to know about the CORE SECTOR of economy. “Core sector of economy is one of the prime industries of economy”. There is huge number of industries in India and despite of being a huge list of industries there are some eight industries that are considered as:
Eight Core Industries consists of 40.27% of the weight of items included in the Index of Industrial Production. These are known as core industries because firstly they are the main industries of the economy and focused on highest for the betterment of the economy.
WHY CALLED AS CORE SECTORS?
It is called as core sector because of its impact on general economic activity and represents the capital base of economy. It helps in the revival of economic growth and has a multiplier effect. These core sectors are generally associated with higher production leading higher demand and economic activity resulting in revival of the economy..
Index of Industrial Production (IIP)
• It is an indicator that measures growth rate of industry groups, changes in volume of industrial products during a given period.
• It is maintained and published monthly by National statistical office, Ministry of statistics and programme implementation.
• Base year of July 2021 is 2011-12.
Recently output from India’s core sectors grew by 9.4% in July. In the revised data incline as well as decline has been seen.
• Crude oil which was used to be the sole sector has registered a decline with a shrink of 3.2%.
• Cement production expanded surging 21.8. Fertilizers showed the pace of 0.5% growth.
• Production of natural gases and coal rose by 18.9% and 18.7% respectively.
• Output of Steel and electricity saw an expand by 9.3% and 9% respectively.
• The revised final growth of core industries for April 2021 is 60.6% from its provisional level 56.1%. As compared to the last financial year the growth rate of ICI during April-July 2021-22 was 21.2%.
INDEX OF EIGHT CORE INDUSTRIES
• It is maintained by OFFICE OF ECONOMIC ADVISER, MINISTRY OF COMMERCE & INDUSTRY. Its objective is to give an advance indication on the production performance of industries.
• It measures the individual and collective performances of the production.
WHAT COMES UNDER THESE CORE INDUSTRIES?
At the end it could be concluded that the core sector output was lagging due to the lockdown caused by 2nd wave. Further unlocking came with a 5.4% rise in July 2021 as industries are coming to their normal pace. The rise in output might enhance in the upcoming moths as the festive season has started with the demands of the people too.
REFERENCES:
• THE HINDU
• MINISTRY OF STATISTICS AND PROGRAMME IMPLEENTATION
• DRISHTI IAS
06/09/2021
Monday
Azad singh