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Index of Eight Core Industries

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The Office of the Economic Adviser (OEA) in the Department of Industrial Policy and Promotion (DIPP), Government of India compiles and releases the production index of core industries.
 
  
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<p> The monthly Index of Eight Core Industries  (ICI) is a production volume index. The objective of the ICI is to  provide an advance indication on production performance of industries  of &lsquo;core&rsquo; nature before the release of [http://www.arthapedia.in/index.php?title=Index_of_Industrial_Production Index  of Industrial Production] (IIP) by Central Statistics Office.  These industries are likely to impact on general economic activities  as well as industrial activities. </p>
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<p> ICI measures collective and individual  performance of production in selected eight core industries viz.  Coal, Crude Oil, Natural Gas, Petroleum Refinery Products,  Fertilizers, Steel, Cement and Electricity. Components covered in  these eight industries for the purpose of compilation of index are as  follows:</p>
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<UL>
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  <LI><strong>Coal  –</strong> Coal Production excluding Coking coal.</LI>
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  <LI><strong>Crude  Oil –</strong> Total Crude Oil Production.</LI>
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  <LI><strong>Natural  Gas –</strong> Total Natural Gas Production.</LI>
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  <LI><strong>Refinery  Products –</strong> Total Refinery Production (<strong>in  terms of Crude Throughput</strong>).</LI>
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  <LI><strong>Fertilizer  –</strong> Urea, Ammonium Sulphate (A/S), Calcium Ammonium Nitrate (CAN),  Ammonium chloride (A/C), Diammonium Phosphate (DAP), Complex Grade  Fertilizer and Single superphosphate (SSP).</LI>
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  <LI><strong>Steel  –</strong> Production of Alloy and Non-Alloy Steel only.</LI>
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  <LI><strong>Cement  –</strong> Production of Large Plants and Mini Plants.</LI>
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  <LI><strong>Electricity  –</strong> Actual Electricity Generation of Thermal, Nuclear, Hydro, imports  from Bhutan.</LI>
 +
</UL>
  
'''The rationale of the Index of Core Industries'''
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<p> The Index is compiled and released by [http://eaindustry.nic.in/ Office of the Economic Adviser] (OEA), Department of Industrial Policy &amp; Promotion (DIPP),  Ministry of Commerce &amp; Industry, Government of India. </p>
 +
<p>&nbsp;</p>
  
The Central Statistics Office (CSO) of the Government of India brings out monthly [http://www.arthapedia.in/index.php?title=Index_of_Industrial_Production Index of Industrial Production (IIP)]. Industrial Production in the IIP comprises three distinct groups of industry, (a) Mining, (b) Manufacturing and (c) Electricity. The quick estimate of IIP pertaining to a month is released after approximately six weeks (on 12th of the Month, or if 12th is a Gazetted Holiday, on the previous working day).
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<p> <strong>History &amp; origin</strong></p>
 +
<p> Among the industries that go into the IIP  basket, in order to provide an indication of how the industries whose  production performance was &lsquo;core&rsquo; in nature (because of their  likely impact on general economic activity as well as other  industrial activity) are performing, the exercise of bringing out an  Index of Core Industries was initiated in the Office of the Economic  Adviser, with six industries, viz. Coal, Cement, Electricity, Crude  Oil, Refinery products, and Steel.&nbsp;</p>
 +
<p> The Index of <strong>Six</strong> Core industries had a combined weight of 26.7 per cent in the earlier  series of the IIP with base year 1993-94. When the base year for IIP  was revised to 2004-05, the base year for the Index of Core  Industries was also revised to 2004-05, along with a revised  weighting diagram. In the new series, two new additions, i. e. of Natural Gas and Fertilizers were made to make it an Index of <strong>Eight</strong> Core Industries accounting for 37.9 percent weight in the Index of  Industrial Production (IIP). This Index is available since 2007-08  and is available in the&nbsp;Official Website of the OEA.</p>
  
Among the industries that go into the IIP basket, in order to provide an indication of how the industries whose production performance was ‘core’ in nature because of their likely impact on general economic activity as well as other industrial activity, the exercise of bringing out an Index of Core Industries was initiated in the Office of the Economic Adviser, with six industries, viz. Coal, Cement, Electricity, Crude Oil, Refinery products, and Steel. The Index of Six Core industries had a combined weight of 26.7 per cent in the earlier series of the IIP with base year 1993-94.  
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<p>&nbsp;</p>
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<p><strong>Coverage  and Scope of ICI</strong></p>
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<p> The Eight Core Index broadly has a combined  weight of 37.90 % in the Index of Industrial Production (IIP) and is  published about 12 days prior to IIP. The weights of respective  industries in IIP are - Coal 4.38 %, Crude Oil production 5.22 %, Natural Gas 1.71 %, Petroleum Refinery 5.94 %, Fertilizers 1.25 %,  Steel 6.68 %, Cement production 2.41 % and Electricity generation  10.32 %.</p>
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<p> The ICI is widely used by policy makers,  including, Ministry of Finance, other Ministries and Departments,  Banks financing Infrastructure projects, Reserve Bank of India (RBI)  and Railway Board. </p>
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<p>&nbsp;</p>
  
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<p><strong>Frequency  and Method of Calculation/Revision of ICI</strong></p>
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<p> The Index of Eight Core Industries is  a provisional index which is  released every month. The index is calculated by using the Laspeyre&rsquo;s  formula of weighted arithmetic mean of quantity relatives.</p>
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<p> While compiling the ICI  of a particular month, the data of the corresponding month of the  previous year is also revised. The revised figures are taken as  provided by the respective source agencies<sup id="ref1" class="reference">[[#ref1|[1]]]</sup>.  Some source agencies incidentally publish this data on their official  websites even before the release of ICI for that month. The monthly  press release on ICI clarifies this method of revision through a  footnote. Revision allows capturing of the entire production data as  it flows in through the year, which would otherwise be lost. Further,  a transparent process is followed whereby the data of actual  production for each industry is also placed in public domain along  with the ICI.</p>
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<p>&nbsp;</p>
  
'''Present Status'''
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<p><strong>Dissemination  of the ICI</strong></p>
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<p> The index is released on last working day  of every month at 5.00 P.M.  If last day happens to be a holiday, it  is released on first working day of next month. The index is released  through Press Information Bureau (PIB) as well as on website of the  Office of the Economic Adviser ([http://www.eaindustry.nic.in www.eaindustry.nic.in]).  The press release to PIB includes both index and growth rates for  each industry and at aggregate level for monthly, cumulative (current  year and previous year) and annual (last five year).</p>
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<p> The monthly, cumulative and annual data  including actual production, index and growth rate for all eight  industries since 2004-05 onward in Microsoft Excel is also uploaded  every month on the website of Office of the Economic Adviser, which  is unique to this index. The  detailed excel sheet on monthly data is also uploaded on Government  of India&rsquo;s data portal at <U>data.gov.in</U>.</p>
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<p>&nbsp;</p>
  
When the base year for IIP was revised to 2004-05, the base year for the Index of Core Industries was also revised to 2004-05, along with a revised weighting diagram. In the new series, two new additions, i. e. of Natural Gas and Fertilizers weremade to make it an Index ofEight Core Industries accounting for 37.9 percent weight in the Index of Industrial Production (IIP). This Index is available since 2007-08 and is available in the [http://eaindustry.nic.in/ Official Website of the OEA].
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<p><strong>Revision  of the Index</strong></p>
 +
<p> The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has revised the base year of the all-India Index of Industrial Production (IIP) from  2004-05 to 2011-12. Index of core Industries is also under  revision  to align with the revised IIP. </p>
  
The Eight Core Industries areCoal, Cement, Electricity, Crude Oil, Refineryproducts, Steel, Fertilizers and Natural Gas, which have the following weights in IIP.
 
  
  
{| class="wikitable"
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<span class="small_footernote" id="ref1"> 1. Source  Agencies<br>
|-
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The  list of source agencies responsible for furnishing the production  data to the Office is as below:
!
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<UL> 
! Coal
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  <LI><strong>Coal-</strong> Office of the Coal Controller, Kolkata.</LI>
! Crude Oil
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    <LI><strong>Crude Petroleum- </strong>Ministry  of Petroleum and Natural Gas.</LI>
! Natural Gas
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    <LI><strong>Refinery Products- </strong>Ministry  of Petroleum and Natural Gas.</LI>
! Refinery Products
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    <LI><strong>Natural  Gas- </strong>Ministry  of Petroleum and Natural Gas.</LI>
! Fertilizers
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    <LI><strong>Cement- </strong>Cement  Section, Department of Industrial Policy &amp; Promotion.</LI>
! Steel
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    <LI><strong>Steel-</strong> Joint Plant Committee, Kolkata.</LI>
! Cement
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    <LI><strong>Fertilizers-</strong> Department of Fertilizers, Ministry of Chemicals and Fertilizers.</LI>
! Electricity
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    <LI><strong>Electricity-</strong> Central Electricity Authority.</LI>
! Total Weight
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  </UL>
|-
+
</span>
| Weights
+
| 4.379
+
| 5.216
+
| 1.708
+
| 5.939
+
| 1.254
+
| 6.684
+
| 2.406
+
| 10.316
+
| 37.903
+
|}
+
  
  
The Index of Eight Core Industries is released on the last day of the month following the month for which the Index pertain. If the last day of the month is a Gazetted Holiday, then it is released on the next working day. The Index of Eight Core Industries released about two weeks prior to the IIP release provides an advance indication of performance of more than one third of the IIP basket.
 
  
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==Also  See==
 +
*[http://www.arthapedia.in/index.php?title=Index_of_Industrial_Production Index  of Industrial Production]</p>
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*[http://www.arthapedia.in/index.php?title=Index_of_Industrial_Production Index  of Industrial Production] (2011-12) series
 +
 +
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==Contributed  by==
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*[http://ies.gov.in/myaccount-profile-view.php?memid=82 Dr.  Seema Gaur (IES 1983)] &amp; [http://www.ies.gov.in/myaccount-profile-view.php?memid=21 Ms.  Aditi Ray, IES (1979)]</p>
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*Email: [mailto:seema.gaur@nic.in seema.gaur@nic.in]</p>
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*Email-&nbsp;[mailto:aditisray@nic.in aditisray@nic.in]</p>
  
==Contributed by==
 
* [http://www.ies.gov.in/myaccount-profile-view.php?memid=21 Ms. Aditi Ray, IES (1979)]
 
*Email- [mailto:aditisray@nic.in aditisray@nic.in]
 
  
 
[[Category:concepts|IndexofEightCoreIndustries]]
 
[[Category:concepts|IndexofEightCoreIndustries]]

Revision as of 09:23, 25 May 2017

The monthly Index of Eight Core Industries (ICI) is a production volume index. The objective of the ICI is to provide an advance indication on production performance of industries of ‘core’ nature before the release of Index of Industrial Production (IIP) by Central Statistics Office. These industries are likely to impact on general economic activities as well as industrial activities.

ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity. Components covered in these eight industries for the purpose of compilation of index are as follows:

The Index is compiled and released by Office of the Economic Adviser (OEA), Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Government of India.

 

History & origin

Among the industries that go into the IIP basket, in order to provide an indication of how the industries whose production performance was ‘core’ in nature (because of their likely impact on general economic activity as well as other industrial activity) are performing, the exercise of bringing out an Index of Core Industries was initiated in the Office of the Economic Adviser, with six industries, viz. Coal, Cement, Electricity, Crude Oil, Refinery products, and Steel. 

The Index of Six Core industries had a combined weight of 26.7 per cent in the earlier series of the IIP with base year 1993-94. When the base year for IIP was revised to 2004-05, the base year for the Index of Core Industries was also revised to 2004-05, along with a revised weighting diagram. In the new series, two new additions, i. e. of Natural Gas and Fertilizers were made to make it an Index of Eight Core Industries accounting for 37.9 percent weight in the Index of Industrial Production (IIP). This Index is available since 2007-08 and is available in the Official Website of the OEA.

 

Coverage and Scope of ICI

The Eight Core Index broadly has a combined weight of 37.90 % in the Index of Industrial Production (IIP) and is published about 12 days prior to IIP. The weights of respective industries in IIP are - Coal 4.38 %, Crude Oil production 5.22 %, Natural Gas 1.71 %, Petroleum Refinery 5.94 %, Fertilizers 1.25 %, Steel 6.68 %, Cement production 2.41 % and Electricity generation 10.32 %.

The ICI is widely used by policy makers, including, Ministry of Finance, other Ministries and Departments, Banks financing Infrastructure projects, Reserve Bank of India (RBI) and Railway Board.

 

Frequency and Method of Calculation/Revision of ICI

The Index of Eight Core Industries is a provisional index which is released every month. The index is calculated by using the Laspeyre’s formula of weighted arithmetic mean of quantity relatives.

While compiling the ICI of a particular month, the data of the corresponding month of the previous year is also revised. The revised figures are taken as provided by the respective source agencies[1]. Some source agencies incidentally publish this data on their official websites even before the release of ICI for that month. The monthly press release on ICI clarifies this method of revision through a footnote. Revision allows capturing of the entire production data as it flows in through the year, which would otherwise be lost. Further, a transparent process is followed whereby the data of actual production for each industry is also placed in public domain along with the ICI.

 

Dissemination of the ICI

The index is released on last working day of every month at 5.00 P.M. If last day happens to be a holiday, it is released on first working day of next month. The index is released through Press Information Bureau (PIB) as well as on website of the Office of the Economic Adviser (www.eaindustry.nic.in). The press release to PIB includes both index and growth rates for each industry and at aggregate level for monthly, cumulative (current year and previous year) and annual (last five year).

The monthly, cumulative and annual data including actual production, index and growth rate for all eight industries since 2004-05 onward in Microsoft Excel is also uploaded every month on the website of Office of the Economic Adviser, which is unique to this index. The detailed excel sheet on monthly data is also uploaded on Government of India’s data portal at data.gov.in.

 

Revision of the Index

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has revised the base year of the all-India Index of Industrial Production (IIP) from 2004-05 to 2011-12. Index of core Industries is also under revision to align with the revised IIP.


1. Source Agencies
The list of source agencies responsible for furnishing the production data to the Office is as below:


Also See


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