Q. Consider the following statements regarding the Eight Core Industries:
1. Combined weight of eight core industries is more than fifty percent in Index of Industrial Production (IIP)
2. Electricity has highest weightage in the Index of Eight Core Industries (ICI).
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

Answer: D

Both statements are incorrect. 

  • Statement 1 is incorrect: The Quick Estimates of Index of Industrial Production (IIP) are released by NSO on 12th of every month with a six weeks lag and compiled with data received from source agencies, which in turn receive the data from the producing factories/ establishments. Combined weight of eight core industries is 40.27 percent of IIP with base 2011-12. 
  • Statement 2 is incorrect: The monthly Index of Eight Core Industries (ICI) is a production volume index released by Office of the Economic Adviser (OEA). ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil.