In the 'Index of Eight Core Industries', which one of the following is given the highest weight?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2015, Q53

Contents18
UPSC Prelims GS2015Indian Economy
  1. ACoal production
  2. BElectricity generation
  3. CFertilizer production
  4. DSteel production
Show answer

Answer: (B) Electricity generation

The Index of Eight Core Industries tracks production in 8 key sectors that form the backbone of the economy.

As per the Economic Survey Appendix (A-42), these 8 sectors and their approximate weights are:

  • Petroleum Refinery Products (28.04%)
  • Electricity (19.85%)
  • Steel (17.92%)
  • Coal (10.33%)
  • Crude Oil (8.98%)
  • Natural Gas (6.88%)
  • Cement (5.37%)
  • Fertilizers (2.63%).

Together, these core industries account for about 40.27% of the Index of Industrial Production (IIP).

Among the options given — Coal (10.3%), Electricity (19.85%), Fertilizer (2.63%), and Steel (17.92%) — Electricity has the highest weight at nearly 20%.

This is a factual/data-based question.

Tip: You do not need to memorize all weights, but remember the top 3 in order — Refinery > Electricity > Steel — and that Fertilizer has the lowest weight.

Why this was asked

The Index of Eight Core Industries measures production in 8 sectors that together account for about 40% of India's total industrial production, making it a key economic indicator.

The top 3 sectors by weight are always Petroleum Refinery Products (highest at around 28%), followed by Electricity (around 20%), then Steel (around 18%), while Fertilizers has the lowest weight at under 3%.

Index of Eight Core Industries

Indian Economy Index of Eight Core Industries highest weight

Index of Eight Core Industries: Composition & Weights

Must know

Top 3 by weight: Petroleum Refinery Products > Electricity > Steel

Electricity has the highest weight among the 4 options at 19.85%

Good to know

Core industries account for 40.27% of total IIP

Fertilizers have the lowest weight at 2.63%

What It Measures

The Index of Eight Core Industries tracks monthly production performance in 8 critical sectors that form the backbone of India's economy. Released by the Ministry of Commerce & Industry, this index serves as a leading indicator for the broader Index of Industrial Production (IIP).

Eight Core Industries & Weights

Industry

Weight (%)

Rank

Key Role

Petroleum Refinery Products

28.04

1

Energy supply, transport fuel

Electricity

19.85

2

Power for all sectors

Steel

17.92

3

Infrastructure, construction

Coal

10.33

4

Primary energy source

Crude Oil

8.98

5

Raw material for refining

Natural Gas

6.88

6

Clean energy, fertilizers

Cement

5.37

7

Construction, infrastructure

Fertilizers

2.63

8

Agricultural inputs

Question Analysis

Among the 4 options, Electricity (19.85%) beats Coal (10.33%), Steel (17.92%), and Fertilizer (2.63%)

The question tests factual knowledge of sectoral weights, not conceptual understanding

Memory aid: REP dominates → Refinery, Electricity, Petroleum (though Steel comes 3rd, not Petroleum)

Exam traps

Trap: Assuming Steel has highest weight because it's a major industry — Electricity actually ranks higher

Trap: Confusing this with IIP weights where manufacturing dominates — Core Industries use different weights

Trap: Thinking Coal leads because it's India's primary energy source — Refined petroleum products have higher economic value

Memory error: Fertilizers consistently have the lowest weight — never pick fertilizers for 'highest' questions

Index of Industrial Production

Indian Economy Index of Industrial Production IIP

Index of Industrial Production (IIP): Structure & Significance

Must know

IIP measures monthly industrial performance across Mining, Manufacturing, Electricity

Manufacturing has the highest weight at 77.63% in IIP

Good to know

Released by Central Statistics Office (CSO) with 6-week lag

Base year: 2011-12 (revised from 2004-05)

Purpose & Coverage

IIP is India's primary measure of industrial sector performance, covering production trends across mining, manufacturing, and electricity generation. It serves as a key input for GDP calculations and economic policy decisions.

IIP Sectoral Composition

Sector

Weight (%)

Sub-categories

Key Industries

Manufacturing

77.63

23 industry groups

Textiles, Chemicals, Automobiles, Electronics

Mining

14.37

6 industry groups

Coal, Iron Ore, Bauxite, Limestone

Electricity

7.99

Single category

Thermal, Hydro, Nuclear, Renewable

Relationship with Core Industries

Core Industries contribute 40.27% to total IIP weight — they're a subset, not separate

IIP covers 407 items while Core Industries track only 8 sectors

Core Industries data is released earlier (around 12th of month) than full IIP (12th of next month)

Strong correlation: Core Industries growth often predicts IIP direction

Exam traps

Trap: Confusing IIP sectoral weights (Manufacturing 77%) with Core Industries weights (Refinery 28%)

Trap: Thinking Core Industries and IIP are separate indices — Core Industries are part of IIP

Trap: Using old 2004-05 base year — current base is 2011-12

Electricity Sector in India

Indian Economy Electricity generation

India's Electricity Sector: Generation Mix & Policy Framework

Must know

Coal-based thermal power dominates India's electricity generation at ~70%

Renewable energy target: 500 GW by 2030

Good to know

Central Electricity Authority (CEA) monitors power sector statistics

Electricity is in Concurrent List — both Centre and States can legislate

Strategic Importance

Electricity generation receives the 2nd highest weight (19.85%) in Core Industries Index because it's essential for all economic activities. Power availability directly impacts industrial production, making it a critical leading indicator for economic performance.

India's Power Generation Mix

Source

Share (%)

Key Features

Major States

Thermal (Coal)

~70

Cheapest, high emissions

Chhattisgarh, Jharkhand, Odisha

Renewable

~25

Solar, Wind, growing fast

Rajasthan, Gujarat, Tamil Nadu

Hydro

~12

Clean, seasonal variation

Himachal Pradesh, Uttarakhand

Nuclear

~3

Clean, limited capacity

Maharashtra, Tamil Nadu

Gas

~2

Flexible, expensive fuel

Gujarat, Uttar Pradesh

Policy Framework

Electricity Act 2003: Comprehensive reform law covering generation, transmission, distribution

Central Electricity Regulatory Commission (CERC): Regulates interstate electricity trade

State Electricity Regulatory Commissions: Regulate intrastate power sector

Power Grid Corporation: Central PSU managing national transmission network

Generation Capacity Distribution

Coal-rich states dominate thermal generation while western/southern states lead in renewables
Coal-rich states dominate thermal generation while western/southern states lead in renewables

Source: x.com — Today's infographic depicts the installed power capacity in #India ... · x.com

Steel Production in India

Indian Economy Steel production

India's Steel Industry: Production Capacity & Global Position

Must know

India is world's 2nd largest steel producer after China

Steel has 17.92% weight in Core Industries Index — 3rd highest

Good to know

National Steel Policy 2017: Target 300 MT capacity by 2030-31

Odisha leads in steel production due to iron ore reserves

Strategic Significance

Steel production carries high weight (17.92%) in Core Industries because it's a proxy for infrastructure and construction activity. Steel demand reflects economic growth — from railways and highways to automobiles and machinery manufacturing.

Major Steel Producers in India

Company

Ownership

Capacity (MT)

Key Locations

Steel Authority of India (SAIL)

Public

~21

Bhilai, Bokaro, Durgapur, Rourkela

Tata Steel

Private

~19

Jamshedpur, Kalinganagar

JSW Steel

Private

~18

Vijayanagar, Dolvi

Jindal Steel & Power

Private

~15

Raigarh, Angul

Rashtriya Ispat Nigam (RINL)

Public

~7

Visakhapatnam

Raw Material Advantage

India has world's 5th largest iron ore reserves — key input for steel production

Coking coal is mostly imported from Australia, USA — major cost component

Steel clusters in Odisha, Jharkhand, Chhattisgarh due to mineral proximity

Finished steel consumption: ~100 kg per capita (vs global average 230 kg) — huge growth potential

Steel Production Centers

Steel production concentrated in mineral-rich eastern states — Odisha, Jharkhand, Chhattisgarh
Steel production concentrated in mineral-rich eastern states — Odisha, Jharkhand, Chhattisgarh

Source: India Map — Iron Ore Mines in India, Iron Ore Mines Map of India · www.mapsofindia.com