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Core Sector: The 8 basic sectors of the country have a huge impact on the GDP, because they are the barometers of the economy. These sectors have also been included in the target of India’s Vision 2030.
New Delhi. The news has come that the growth rate of eight major infrastructure sectors of the country declined to 1.8 percent in November. It was 5.8 percent in November 2024. Government data states that this slowdown has been caused by the decline in crude oil, natural gas, refinery products and electricity production. However, the performance of these sectors has improved on a monthly basis. In October, its growth rate had fallen to below zero at 0.1 percent. If we look at the entire financial year, its growth rate from April to November has been 2.4 percent, which was 4.4 percent in the same period last year.
The eight major basic industries of the country include coal, crude oil, natural gas, petroleum refinery products, electricity, fertilizers, cement and steel. These are called basic industries because these are the industries which lay the foundation of the economy of any country. All other industries of the country run around these industries. These sectors provide raw materials, energy and basic resources to other industries. The share of these basic industries in the index of total industrial production of the country is more than 60 percent. This is why it is very important for the country to grow these 8 basic industries.
How important are the 8 basic industries?
- Crude Oil: Fulfill the fuel and petrochemicals needs of the country.
- Refinery: These refineries have a major contribution in supplying petrol and diesel.
- Coal : Coal plays the biggest role in generating electricity and producing steel.
- Natural Gas: It is used in making fertilizers and in the field of energy.
- Electricity : In the country, electricity generated from hydro, coal, solar and wind energy fulfills all the needs.
- Cement: Cement plays the biggest role in creating the basic infrastructure of the country.
- Fertilizer: Fertilizer is needed for farming and it is also necessary to increase its production to prepare food grains.
- Steel : Steel is used in making everything from bridges to houses and all types of vehicles, without which many industries cannot function.
Why is it important for the economy
Growth in basic industries gives impetus to the economy. It plays about 40 percent share in the country’s GDP. Therefore, if the growth of this sector is around 7 percent, then rapid growth is also seen in the GDP. Through this, lakhs of people also get employment directly and indirectly. A lot of employment comes especially in production, mining and transportation. One has to depend on this sector for roads, bridges, cities and other construction in the country. Oil, steel and fertilizer sectors give a boost to exports, while fertilizers give growth to agriculture, cement to construction and steel to the manufacturing sector.
What is the effect of laziness?
The slowdown in the economy also depends on these 8 basic sector industries. If the growth rate of these industries goes down, the economy is deeply affected and its pace also slows down. This reduces investment and increases unemployment. If there is a slowdown in production, the prices of raw materials also increase. This affects inflation and ultimately consumers may also have to bear the brunt of it.
