Economy ยท GS3
New Index of Core Industries series
One line
The government issued the first Index of Core Industries series with base year 2022-23.
Summary
The eight core industries influence wider industrial activity. Rebasing updates weights and coverage but complicates comparison across series.
PYQ pattern
UPSC often tests the static concept behind this development and its implementation limits. Use the official UPSC question-paper archive.
Core notes
- The eight sectors include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity.
- The Office of the Economic Adviser compiles the index.
- The index measures production volume, not prices.
Prelims lens
- Core industries carry major weight in IIP.
- WPI and the core index measure different things.
- Read the announcement separately from measured outcomes.
MCQ 1
Consider the following statements:
- Core industries carry major weight in IIP.
- The Core Industries index measures consumer prices.
Which of the statements given above is/are correct?
- A. 1 only
- B. 2 only
- C. Both 1 and 2
- D. Neither 1 nor 2
Reveal answerHide answer
A
Statement 1 is correct. Statement 2 makes a claim that the source or static concept does not support.
MCQ 2
Which is a core industry?
- A. Cement
- B. School education
- C. Tourism only
- D. Bank deposits
Reveal answerHide answer
A
Cement is the correct relationship in this context.
Mains
Question, 10 marks, 150 words: What does the rebased Core Industries index add to short-term economic analysis?
Approach:
- Define the institution, mechanism, or indicator.
- Explain its current significance.
- Examine implementation limits and trade-offs.
- Suggest specific institutional or policy measures.