Economics • Indian EconomyEasy
What is the primary purpose of the 'Index of Eight Core Industries' compiled in India?
A. To measure the monthly performance and production trends of key foundational infrastructure sectors.✓ Correct Answer
B. To track retail consumer price inflation across urban households.
C. To evaluate the foreign exchange reserves adequacy against short-term external debt.
D. To assess agricultural yield variations across different monsoon zones.
💡 Solution & Explanation
The Index of Eight Core Industries measures the combined monthly production performance of foundational industrial sectors including electricity, steel, refinery products, crude oil, coal, natural gas, cement, and fertilizers. Compiled by the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade, these sectors carry a heavy weightage within the broader Index of Industrial Production. Policymakers monitor this index closely as a leading economic barometer for gauging overall infrastructure momentum. Industrial growth figures are published monthly with a short lag.
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