UPSC Prelims 2015 Q8: Indian Economy – Infrastructure & Industry
In the ‘Index of Eight Core Industries’,
which one of the following is given the highest weight?
- (a) Coal production
- (b) Electricity generation
- (c) Fertilizer production
- (d) Steel production
Answer: (b) Electricity generation
Explanation
Index of Eight Core Industries
When this question was asked (2015), the index used the 2004-05 base year.
Electricity had the highest weight then.
| Industry | Weight in 2004-05 series | Weight in 2011-12 series (current) |
|---|---|---|
| Electricity | 10.32 (highest) | 19.85 |
| Steel | 6.68 | 17.92 |
| Refinery products | 5.94 | 28.04 (highest) |
| Crude oil | 5.22 | 8.98 |
| Coal | 4.38 | 10.33 |
| Cement | 2.41 | 5.37 |
| Natural gas | 1.71 | 6.88 |
| Fertilizers | 1.25 (lowest) | 2.63 (lowest) |
Note: in the current series, refinery products carry the highest weight.
The eight industries make up about 40 percent of the Index of Industrial Production.
Answer: (b) Electricity generation.
Why each option is right or wrong
- (a) Incorrect. Coal production had a weight of only 4.38 in that series.
- (b) CORRECT. Electricity generation had the highest weight in the series used in 2015.
- (c) Incorrect. Fertilizer production has the lowest weight of the eight.
- (d) Incorrect. Steel production was second, behind electricity.
Key point
Eight core industries: in the 2004-05 series electricity had the highest weight; in the current 2011-12 series refinery products do (28.04). Fertilizers are lowest.
Remember
Core industries: refinery products lead today; electricity led in 2015.
Common mistakes
- Answering from the current series for a 2015 question, or the reverse.
- Forgetting that refinery products now lead the index.
- Thinking the core index is separate from the Index of Industrial Production; it is part of it.
Exam tip
Old series: electricity first. New series: refinery products first. Fertilizers last in both.
Sources
- Office of the Economic Adviser, DPIIT — Index of Eight Core Industries
- Ministry of Statistics and Programme Implementation — Index of Industrial Production (Base 2011-12)