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
Guest previewThis 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 2011–12 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.
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