UPSC Prelims 2012 Q39: Indian Economy – Infrastructure & Industry
In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries
have a combined weight of 37·90%. Which of the following are among those Eight Core
Industries?
1. Cement
2. Fertilizers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below :
- (a) 1 and 5 only
- (b) 2, 3 and 4 only
- (c) 1, 2, 3 and 4 only
- (d) 1, 2, 3, 4 and 5
Answer: (c) 1, 2, 3 and 4 only
Explanation
Eight Core Industries
| Industry | Among the Eight Core Industries? |
|---|---|
| 1. Cement | Yes |
| 2. Fertilizers | Yes |
| 3. Natural gas | Yes |
| 4. Refinery products | Yes |
| 5. Textiles | No |
The full list:
| Core industry | Note |
|---|---|
| Coal | Energy |
| Crude oil | Energy |
| Natural gas | Energy |
| Refinery products | Has the largest weight today |
| Fertilizers | Farm input |
| Steel | Basic metal |
| Cement | Construction |
| Electricity | Energy |
Weight in the Index of Industrial Production: it was 37.90 per cent in the old series (base 2004-05).
It is 40.27 per cent in the present series (base 2011-12).
The index is released by the Office of the Economic Adviser, DPIIT.
Answer: (c) 1, 2, 3 and 4 only.
Why each option is right or wrong
- (a) Incorrect. Textiles is not a core industry, and three core industries are left out.
- (b) Incorrect. Cement is also among the Eight Core Industries.
- (c) CORRECT. Cement, fertilizers, natural gas and refinery products are core industries.
- (d) Incorrect. Textiles is not among the Eight Core Industries.
Key point
Eight Core Industries: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, electricity; weight 40.27 per cent of IIP (base 2011-12).
Remember
Core eight: coal, crude, gas, refinery, fertilizer, steel, cement, electricity.
Common mistakes
- Adding textiles because it is a large employer.
- Quoting the old weight of 37.90 per cent as the present figure.
- Forgetting fertilizers, the only farm-input industry in the list.
Exam tip
Core industries are inputs for other industries: energy, steel, cement and fertilizers. Textiles is a consumer goods industry.
Sources
- Office of the Economic Adviser, DPIIT — Index of Eight Core Industries (base 2011-12)
- Ministry of Statistics and Programme Implementation — Index of Industrial Production