News

India’s core sector output grew by 1.8% in November, as per data released by the Ministry of Commerce and Industry. While cement, steel, fertiliser and coal recorded positive growth, crude oil and natural gas production continued to contract, pulling down overall momentum.

Key points

1. Overall growth: Core sector index grew 1.8% (YoY) in November, slower than earlier months.
2. Best performer: Cement emerged as the strongest segment with 14.5% YoY growth, driven by infrastructure and construction demand.
3. Positive sectors:
   • Steel: Growth supported by infrastructure and manufacturing demand.
   • Coal: Output rose, reflecting higher power and industrial demand.
4. • Fertiliser: Increased by 1.3%, aided by agricultural requirements.
5. Negative sectors:
   • Crude oil: Output contracted by 3.2%, continuing long-term decline.
6. • Natural gas: Fell by 2.5%, due to ageing fields and lower domestic production.
7. Cumulative performance: Core sector growth for April–November FY26 remained modest, reflecting uneven industrial recovery.

Static Info (Prelims Notes)

1. Index of Eight Core Industries (ICI): Measures performance of eight infrastructure sectors that have a 40.27% weight in the Index of Industrial Production (IIP).
2. Eight core industries: Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity.
3. Why core sector matters: Acts as a leading indicator of industrial and economic activity.
4. Structural issue: Persistent decline in crude oil and gas highlights India’s energy import dependence.
5. Policy linkage: Growth in cement, steel, and coal aligns with infrastructure push and capital expenditure-led growth.

Prelims MCQ

Q1. With reference to India’s Index of Eight Core Industries, consider the following statements:

1. The Index of Eight Core Industries has a weight of over 40% in the Index of Industrial Production (IIP).

2. Cement and steel are included among the eight core industries.

3. Crude oil and natural gas production have consistently shown positive growth in recent months.

Which of the statements given above is/are correct?

a) 1 and 2 only

b) 1 and 3 only

c) 2 and 3 only

d) 1, 2 and 3

Answer: a) 1 and 2 only