In the Index of Eight Core Industries used to track industrial performance in India, which one of the following core sectors is assigned the highest weight in the index calculation?

Difficulty: Medium

Correct Answer: Electricity generation

Explanation:


Introduction / Context:
The Government of India and analysts use an Index of Eight Core Industries to monitor the health of key infrastructure and industrial sectors. These eight core industries have a significant impact on overall industrial growth and the Index of Industrial Production. Each core industry is assigned a specific weight reflecting its relative importance. This question examines whether the learner knows which sector carries the highest weight in this index, which is an important fact for examinations on Indian economy and infrastructure.


Given Data / Assumptions:
We are dealing with the Index of Eight Core Industries for India.The four sectors listed in the options are coal, electricity, fertilizers, and steel.We are asked to identify which sector has the highest weight in the index.We assume the commonly referred base year structure used in exam oriented material, where electricity has the largest weight.


Concept / Approach:
The eight core industries include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. Electricity is fundamental to almost every other industrial and service activity and is therefore given the highest weight in the index. A higher weight means that changes in output of that sector have a larger impact on the overall index value. While coal and steel are important, and fertilizers support agriculture, electricity remains the single most heavily weighted sector in the core industries index.


Step-by-Step Solution:
Step 1: Recall the list of eight core industries, including electricity, coal, steel, and fertilizers.Step 2: Remember that electricity is the backbone of modern industry and services, and its performance strongly influences overall production.Step 3: Recognise that, for this reason, electricity has been assigned the highest weight among the core sectors in the official index.Step 4: Compare the options and select electricity generation as the correct answer.Step 5: Confirm mentally that coal, fertilizers, and steel have significant but relatively lower weights.


Verification / Alternative check:
Most standard reference books and government fact sheets on the Index of Eight Core Industries mention electricity as the sector with the maximum weight. This reflects policy makers priority on reliable power supply as a driver of growth. Although coal and steel are essential for production and infrastructure, their weights are lower than that of electricity. Cross checking with exam guides or government publications confirms that electricity generation is indeed the highest weighted core industry.


Why Other Options Are Wrong:
Coal production: Coal is a key input for power and industry, but its weight in the index is lower than the weight assigned to electricity.Fertilizer production: Fertilizers are vital for agriculture, but this sector has a much smaller weight compared to electricity.Steel production: Steel is crucial for infrastructure development and manufacturing, yet its weight is again lower than that of electricity in the core index.


Common Pitfalls:
Students often assume that coal or steel might have the highest weight because these are heavy industries with a long history in India. Without memorising the specific weights, it is easy to guess incorrectly. Another common problem is not distinguishing between economic importance in a broad sense and the specific weight values used by the index. To answer such questions correctly, learners should remember that electricity generation has been given the highest weight among the eight core industries.


Final Answer:
In the Index of Eight Core Industries, the sector with the highest weight is Electricity generation.

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