01 November, 2019
3 Min Read
Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
News: Output of 8 core infrastructure industries contracted by 5.2% in September , indicating the severity of the economic slowdown.
Prelims focus: about 8 core industries, their weightage in Index of Industrial Production
Mains focus: about the recent economic slowdown and its aftermath
About Index Of Industrial Production (IIP)
The eight Core Industries comprise nearly 37.9 % of the weight of items included in the Index of Industrial Production (IIP). The 8 core industries are their relative weight in IIP is as below:
The Industrial Output data is captured and monitored, primarily, through two statistical activities – Annual Survey of Industries (ASI) and Index of Industrial Production (IIP).
Though often interchangeably used, the terms industry and manufacturing are different.
The term industry is comprehensive and may be considered as a superset of manufacturing. Industry, in general, refers to an economic activity that is concerned with the production of goods, extraction of minerals and sometimes even for the provision of services. Thus we have iron and steel industry (production of goods), coal mining industry (extraction of coal) and tourism industry (service provider).
Manufacturing: Production of goods in large quantities after processing from raw materials to more valuable products is called manufacturing.
Industry = Manufacturing + Mining + Electricity + much more.
The total Industrial sector has only around 27 percent share in the total GDP of India. Over the last two decades, the share of the manufacturing sector has stagnated at 17 per cent of GDP – out of a total of 27 per cent for the industry which includes 10 per cent for mining, quarrying, electricity and gas.
Source: The Hindu
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