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Core sectors’ growth skids to 6-month low in November

Core sectors’ growth skids to 6-month low in November
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Core sectors’ growth skids to 6-month low in November

  • India's eight core sectors recorded a growth rate of 7.8% in November, marking a six-month low.
  • The Index of Core Industries (ICI) declined by 3.34% from October levels, reaching its lowest point since March 2023.
  • Reasons for Slowdown: Base effects from the previous year, coupled with a slowdown in housing.

Index of Eight Core Industries (ICI)

  • It is a production volume index that measures the collective and individual production performances of eight selected core industries.
  • Core Industries: Natural Gas, Coal, Refinery Products, Crude Oil, Cement, Electricity, Steel and Fertilizers.
  • Termed as the core industries owing to their strong impact on the general economic activities and the other industrial activities.
  • The calculation of the Index is done by using the Laspeyres formula.
  • They comprise a total of 40.27% of the total weight of the overall items that are included in the Index of Industrial Production (IIP).
  • The new IIP series has revised the base year for the ICI to 2011-12 from the initial base of 2004-05.
  • Published by the Office of the Economic Adviser (OEA), Ministry of Commerce and Industry.

Prelims Takeaway

  • Index of Eight Core Industries (ICI)
  • Index of Industrial Production (IIP)

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