8

Question 8

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

AOptions

A
A) Coal production
B
B) Electricity generation
C
C) Fertilizer production
D
D) Steel production

BSolution

The 'Index of Eight Core Industries' is a production volume index that measures the performance of eight key infrastructure industries in India: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. These industries together account for a significant portion of the Index of Industrial Production (IIP). Among these eight, electricity generation typically holds the highest weightage in the index, reflecting its critical role as an input for almost all other economic activities and its substantial contribution to industrial output. The weightages are revised periodically, but electricity has consistently remained the highest or among the highest.

Diagram for Q8

CStrategy

For questions on economic indices, it's important to know the components and their relative weightages. Memorizing the key industries in core sectors and which one holds the highest weight is a common factual expectation in economics questions for competitive exams.

DSyllabus Analysis

This question falls under the Indian Economy section, specifically economic indicators and the performance of core sector industries.

EQuestion Analysis

Medium. While knowing the eight core industries is common, recalling their specific weightages, particularly the highest one, requires detailed knowledge.