UPSC IAS - 2012
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 :
Year Asked: 2012
Correct Answer
C. 1, 2, 3 and 4 only
Detailed Explanation
The Eight Core Industries are coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity. Under the 2004-05 base year, their combined weight in the IIP was 37.90%. Statements 1 (cement), 2 (fertilizers), 3 (natural gas) and 4 (refinery products) are all on this list, so option C is correct.
Statement 5 is wrong. Textiles is a major manufacturing group in the IIP, but it is not a core sector. Option A fails because it leaves out 2, 3 and 4. Option B fails because it leaves out cement. Option D fails because of textiles.
Core concept: the Index of Eight Core Industries is compiled by the Office of Economic Adviser under DPIIT and released monthly, about two weeks before the headline IIP. That makes it a leading indicator of industrial activity. Mains angle: energy and infrastructure bottlenecks, since these sectors feed most other industries.
Changed since exam: the base year was revised to 2011-12, and the combined weight of the core sectors rose to about 40.27%. The list of eight sectors has not changed.
Trap: candidates assume textiles is core because it is a large, traditional industry. Memorise the eight names as a set: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, electricity.
This question appeared in UPSC Prelims 2012 GS Paper-1.
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