In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

Q: What is UPSC Prelims?

UPSC Prelims is a competitive examination conducted in India. This question is from the 2015 UPSC Prelims Economy paper.

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To prepare for UPSC Prelims Economy, practice previous year questions (PYQs), understand concepts thoroughly, and solve mock tests regularly. This 2015 question covers Economic Survey, Reports & Key Indices topic.

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This UPSC Prelims 2015 Economy question has a hard difficulty level and is marked as an important question.

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Question

In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

Accepted Answer

Correct Answer: B — Electricity generationStep-by-step Solution:The Index of Eight Core Industries (ICI) tracks the output of eight key infrastructure sectors that have a significant impact on industrial production in India. The eight core industries together account for approximately 40.27% of the weight of the Index of Industrial Production (IIP).The eight industries and their weights in the ICI (as per the current base year 2011-12) are:Electricity — 19.85% (highest weight)Steel — 17.92%Petroleum Refinery Products — 28.04% (note: this was revised; older data used in 2015 had Electricity highest)Crude Oil — 8.98%Coal — 10.33%Natural Gas — 6.88%Cement — 5.37%Fertilizers — 2.63% (lowest weight)At the time this question was asked (2015), using the base year data available then, Electricity held the highest weight (approximately 10.3%) in the eight-core industry index, followed by steel, coal, etc. The ICI data from the Economic Survey confirmed electricity's dominant position.Why other options are incorrect:Option A (Coal production): Coal had the second or third-highest weight but not the highest. Coal is crucial for power generation but its ICI weight was lower than electricity.Option C (Fertilizer production): Fertilizers consistently have the lowest weight in the eight-core index — approximately 2.63%. This is the opposite of what the question asks.Option D (Steel production): Steel had a significant weight but was below electricity in the ICI.Key Concept: Eight Core Industries (in order of weight under 2011-12 base): Petroleum Refinery Products > Steel > Electricity > Coal > Crude Oil > Natural Gas > Cement > Fertilizers. The ICI is released monthly by the Office of the Economic Adviser (OEA) under the Ministry of Commerce and Industry. A high-weight sector's performance significantly influences the IIP number. Electricity's high weight reflects its role as input to virtually all other industries — it is a universal intermediate good. India's electricity sector is predominantly thermal (coal-based), with growing contributions from renewables.

In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

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In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

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