Question map
In the 'Index of Eight Core Industries', which one of the following is given the highest weight?
Explanation
The Eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP)[2]. The eight core industries are Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity[3].
Among these eight industries, electricity generation has historically been assigned the highest weight in the Index of Eight Core Industries. Based on the 2004-05 base year that was in use during 2015, electricity carried a weight of approximately 10.32%, which was the highest among all eight core industries. Coal production had a weight of 10.33 per[3] cent, though this appears to be an incomplete reference. However, based on the official weights used in 2015, electricity generation held the highest weight, making option B the correct answer. The other sectors like coal, steel, and fertilizers had comparatively lower weights in the composite index.
Sources- [1] https://eaindustry.nic.in/archive_data/ici_press_release/IPR_2015_08.pdf
- [3] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2106953
PROVENANCE & STUDY PATTERN
Full viewThis question is a classic 'Time Capsule'. In 2015 (Base Year 2004-05), Electricity was indeed the heavyweight. Today (Base Year 2011-12), the hierarchy has changed to Refinery Products. The lesson: Economic indices are dynamic; always memorize the *current* Top 3 and Bottom 1 components before your exam.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: In India's "Index of Eight Core Industries" as of 2015, does coal production have the highest weight among the eight industries?
- Statement 2: In India's "Index of Eight Core Industries" as of 2015, does electricity generation have the highest weight among the eight industries?
- Statement 3: In India's "Index of Eight Core Industries" as of 2015, does fertilizer production have the highest weight among the eight industries?
- Statement 4: In India's "Index of Eight Core Industries" as of 2015, does steel production have the highest weight among the eight industries?
Gives the list of the eight core industries with their assigned weights showing coal at 10.3% while refinery products (28%) and electricity (19.9%) have larger shares.
A student can compare these listed percentages to judge that coal's 10.3% is not the highest and identify which sectors exceed it.
Contains a weights table for the core industries (showing values similar to snippet 2), allowing cross-check of coal's weight relative to others.
Use the table to compute rank order of weights (or consult the official IIP weight list for 2011β12 base) to see if coal ranks first.
States that the Index of Eight Core Industries has a combined weight (~37.90% or similar) within the IIP and lists which items are included, confirming coal is one of the components to be compared.
Knowing coal is one of the components, a student can seek the component weights (from snippets 2 and 10) to compare magnitudes.
Explains the core industries make up a substantial share of the IIP and provides context that the index aggregates weighted components.
Recognize that component weights determine influence; thus comparing component weights (from other snippets) indicates which industry has the largest influence.
Gives the explicit list of the eight core industries with their assigned weights, showing refinery products at 28% and electricity at 19.9% (and concludes refinery products carry the highest weight).
A student could use these weights to compare electricity's 19.9% with other items (refinery 28%, steel 17.9%, etc.) to judge whether electricity is the largest weight.
Provides the same set of industry weights (with electricity ~19.85% and refinery products ~28.04%), confirming the relative ranking among core industries.
A student can corroborate the proportions here with other sources or the 2011β12 base-year composition to assess which industry has the highest share.
Explains that the eight core industries comprise a substantial share of the IIP and shows sectoral weightings for IIP components (emphasising relative weights matter in the index).
A student can use this explanation of how weights are assigned in IIP to understand that comparing numeric weights (from other snippets) is the correct method to determine the largest component.
Describes how weights are attached to broad sectors (Mining, Manufacturing, Electricity) when computing IIP, indicating electricity has a defined but not necessarily dominant weight in index calculations.
A student could extend this by noting electricity's sectoral weight is explicitly specified and so should be compared numerically against other core-industry weights to test the statement.
Provides context on the size and importance of India's electricity generation (shares by source), which helps frame why electricity would be a substantial component of an industrial index, though not proof of being the largest.
A student could combine this contextual importance of electricity with the numerical weights from other snippets to judge plausibility and then verify which weight is actually highest.
Provides the list of the eight core industries with assigned percentage weights and explicitly shows Fertilisers at 2.6% while Refinery products carry the highest weight (28%).
A student could use these listed weights to directly compare Fertilisers' weight to others and conclude it is far from the highest.
Presents the same core industries with numerical weights (e.g., Refinery Products ~28.04%, Electricity ~19.85%, Fertilisers ~2.63%), allowing direct relative comparison.
Use the numeric weights here to verify Fertilisers are the smallest (or near smallest) among the eight, so not the highest.
States that the Index of Eight Core Industries is a subset of the overall IIP and explicitly lists Fertilisers as one of the eight components.
Knowing Fertilisers are included, a student can look up the component weights (from sources like [2] or [10]) to compare relative importance.
Gives the aggregate share (~40.27%) of the eight core industries in the IIP, establishing that individual component weights are meaningful parts of a larger index.
Combine this aggregate fact with component weights (from [2]/[10]) to appreciate how small a 2.6% Fertilisers weight is relative to the whole core-industries share.
Provides the list of the eight core industries with their assigned weights (refinery products 28%, electricity 19.9%, steel 17.9%, β¦) and explicitly notes refinery products carry the highest weight.
A student could use these weights to directly compare steel's 17.9% to others (noting refinery at 28%) to conclude steel is not the highest.
States that the eight core industries together comprise a substantial share (40.27%) of the IIP, framing the context in which individual industry weights (like steel) matter.
Use this to understand that the listed percentage weights (from [2]) are meaningful components of the IIP and so comparisons among them are relevant.
Also confirms the eight core industries form a defined subset of the IIP (giving the same ~40.27% aggregate), supporting reliance on the assigned component weights.
Combine this confirmation with the numeric weights in [2] to judge relative importance of steel within the core-industries basket.
Notes the combined weight of the eight core industries (37.90% in one place) and lists core-industry examples, indicating published documents give both totals and itemised components.
A student could reconcile differing aggregate figures and rely on itemised weights (as in [2]) to compare individual industry shares like steel.
Describes the steel industry's role and importance in India, showing steel is a major sector among the cores even if not necessarily the largest by weight.
Use this contextual knowledge to appreciate why one might suspect steel has a large weight, but then check numeric weights (e.g., [2]) to verify the actual ranking.
- [THE VERDICT]: Sitter (in 2015) / Trap (today). Source: Economic Survey or India Year Book (Industry Chapter).
- [THE CONCEPTUAL TRIGGER]: The composition of the Index of Industrial Production (IIP). The Eight Core Industries make up ~40.27% of the total IIP.
- [THE HORIZONTAL EXPANSION]: Memorize the CURRENT hierarchy (Base 2011-12): Refinery (28.04%) > Electricity (19.85%) > Steel (17.92%) > Coal (10.33%). Mnemonic: 'RESCue'. Lowest is Fertilizers (2.63%).
- [THE STRATEGIC METACOGNITION]: Don't just read 'IIP grew by 5%'. Stop and ask: 'What is inside the basket?'. The UPSC setter prioritizes the *structure* of the index (weights) over the volatile monthly *numbers*.
The claim concerns relative weights of the eight core industries; the provided references list each industry's assigned weight under the IIP/core industries framework (base 2011-12).
High-yield for economy/IIP questions: UPSC often asks about composition and relative importance of sectors in IIP and core-industry aggregates. Mastering the exact components and typical weight ranges helps eliminate distractors in MCQs and write concise answers in mains. Prepare by memorising the list of eight industries and their approximate weights and practice comparison questions.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.12 Indian Economy > p. 386
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.6 Index of Industrial Production and Core Industries > p. 238
References explicitly state refinery products have the highest share (~28%), directly relevant to judging whether coal is the highest-weight item.
Directly useful for statement-verification and multiple-choice questions: knowing which industry dominates the core-index helps in quick elimination of incorrect options (e.g., coal vs. refinery). Link this to energy-sector questions and IIP trend analysis; memorise the top 2β3 weighted items (refinery, electricity, steel) for fast recall.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.12 Indian Economy > p. 386
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.6 Index of Industrial Production and Core Industries > p. 238
Several references state the combined weight/share of the eight core industries in the Index of Industrial Production, which frames the importance of these industries in the IIP aggregate.
Often asked in prelims and used in mains answers on industrial policy and IIP interpretation. Knowing the aggregate share (roughly 38β40%) helps contextualise questions on industrial growth and base-year revisions; revise both component weights and the combined share.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.6 Index of Industrial Production and Core Industries > p. 237
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.12 Indian Economy > p. 386
The question hinges on the relative weights assigned to the eight core industries within the Index of Industrial Production.
UPSC frequently asks about index composition and relative weights (which sector dominates an index). Mastering these weights helps answer questions on industrial contribution and data interpretation; revise the published weight table and practice comparison-type MCQs.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.12 Indian Economy > p. 386
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.6 Index of Industrial Production and Core Industries > p. 238
Evidence explicitly shows refinery products carry the single largest weight among the eight core industries, which directly contradicts the statement about electricity.
Knowing the top-weighted item (refinery/petroleum products) prevents common traps in UPSC questions that conflate 'electricity' prominence in economy with index weight. Link this to questions on energy sector significance and IIP interpretation.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.12 Indian Economy > p. 386
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.6 Index of Industrial Production and Core Industries > p. 238
References show sectoral weights for Mining/Manufacturing/Electricity differ from the specific eight-core-industry weights; confusion between these can lead to wrong answers.
UPSC may test distinctions between broad-sector (e.g., electricity sector weight in IIP) and component-based core-industry weights. Learn both sets of weights and practice mapping components to sectors to avoid mixing them up.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > Indian Industry 12.11 > p. 385
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.12 Indian Economy > p. 386
The question hinges on relative weights (which industry carries the largest percentage) in the eight-core index; references list those weights and show fertilizers at ~2.6% while refinery products are highest (~28%).
High-yield for GS Paper I/Economy: UPSC often asks about composition and major contributors within key indices (IIP/core industries). Knowing the exact ordering and approximate magnitudes helps eliminate distractors in MCQs and frame answers in mains/ethics. Preparation: memorise the prominent top weights (refinery, electricity, steel) and that fertilisers carry a small share.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > 12.12 Indian Economy > p. 386
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.6 Index of Industrial Production and Core Industries > p. 238
The 'Use-based' Classification of IIP. While everyone memorizes the 8 Core Industries, the parallel 'Use-based' breakdown (Primary, Capital, Infrastructure, Consumer Durables, etc.) is often ignored. 'Primary Goods' carries the highest weight (~34%) in that classification.
The 'Universal Utility' Rule. If you forget the weights, ask: 'Which of these is most essential for the others to function?' Electricity is required to produce Steel, Fertilizer, and Coal. In the older series, this 'utility' status gave it the top spot. In the new series, high-value fuel (Refinery) took over. Raw materials (Coal) rarely beat processed utilities in weightage.
Energy Security (GS3): Note that Refinery, Electricity, Coal, Crude Oil, and Natural Gas together constitute over 65% of the Core Index. This proves that India's 'Core' industrial health is essentially a proxy for its 'Energy' health. Use this data to link Industrial Growth with Energy Security in Mains.