Index of Eight Core Industries
The combined Index of Eight Core Industries (ICI) increased by 8.2 per cent (provisional) in June 2023 as compared to the Index of June 2022.
ICI measures combined and individual performance of production of eight core industries viz.
The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP)
The Index of Eight Core Industries, also known as the Core Sector Growth Index, is an economic indicator used to measure the performance of eight key industries that have a significant impact on the country's industrial output.
The growth in these industries directly influences overall industrial production and, by extension, the broader economic performance of the country. The Index of Eight Core Industries is usually released on a monthly basis and is closely monitored by policymakers, analysts, and investors to assess the health and trends of the Indian economy.
The Index of Industrial Production (IIP) is a key economic indicator used in many countries, including India, to measure the changes in the volume of production in the industrial sector over a specified period.
It provides valuable insights into the growth or contraction of various industries, which helps in assessing the overall economic performance.
In India, the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation is responsible for compiling and releasing the IIP data on a monthly basis. The IIP takes into account the production output from various sectors of the Indian economy, including manufacturing, mining, and electricity generation.
It takes into account the production output from three major sectors:
Mining: Includes the extraction of minerals, coal, crude petroleum, and natural gas.
Manufacturing: Encompasses the production of various goods in factories, such as textiles, machinery, vehicles, and electronics.
Electricity: Involves the generation, transmission, and distribution of electricity.
The IIP is calculated using a weighted average of the production data from different industries, with a specific base year chosen as a reference for comparison.
The data is expressed as an index number, where a value greater than 100 indicates growth, and a value less than 100 indicates contraction in industrial production compared to the base year.
The Index of Industrial Production (IIP) holds significant importance for various stakeholders, including governments, policymakers, businesses, investors, researchers, and the general public.