Core Sector: The Government’s move of including Iron ore in the list of indices of core industries is a major reform in the industrial statistics of India. Government of India announced adding the iron ore industry as one of the core industries to the Index of Core Industries (ICI), which is now observed in nine industries instead of eight industries. The new base period of 2022-23 for the revised index will give a more realistic indication of industrial output and the various shares of the mining industry. Iron ore is the key input for rising steel production, so it should be improving measures of industrial activity and providing stronger foundations for policy-making using evidence.
Why in News? – Core Sector
The Government of India declared to add Iron Ore to the Core Sector Index, raising the number of industries from eight to nine in the Core Sector Index. The new revised series has been given a new base period as 2022–23 and would portray the modified current industrial structure and the industrial production of the economy of India.
Key Highlights of Government Adds Iron Ore to Core Sector Index
- The government has increased the number of industries in the Core Sector Index from 8 to 9.
- Iron ore is added as the 9th core industry.
- The current Index of Core Industries (ICI) has taken 2022–23 as the base year.
- The mining industry has emerged as a key contributor to the industrial economy of India, and accordingly, it has been included.
- The key raw material for the steel industry is iron ore.
- It’s a new version of the index that makes things as accurate as possible when it comes to measuring an industry’s growth.
- The new series will help to enhance the compilation of the Index of Industrial Production (IIP).
- The reform facilitates development of data-based economic planning and policy making.
List of Nine Core Industries – Core Sector
| Core Industry | Weight in ICI (%) |
| Refinery Products | 25.33 |
| Electricity | 19.85 |
| Steel | 17.92 |
| Coal | 10.33 |
| Iron Ore (Newly Added) | 7.55 |
| Cement | 5.69 |
| Natural Gas | 4.87 |
| Crude Oil | 4.59 |
| Fertilizers | 3.87 |
Major Iron Ore Producing States in India
| State | Major Mining Areas/Districts | Major Ore Type | Key Fact |
| Odisha | Keonjhar, Sundargarh, Mayurbhanj, Jajpur | Hematite | Largest producer of iron ore in India |
| Chhattisgarh | Bailadila (Dantewada), Durg, Kanker | Hematite | Bailadila has some of Asia’s richest high-grade iron ore deposits |
| Karnataka | Ballari (Bellary), Chitradurga, Tumakuru | Hematite & Magnetite | Major iron ore producer in South India |
| Jharkhand | Noamundi, Gua (West Singhbhum) | Hematite | Home to Noamundi, one of India’s oldest iron ore mines |
| Goa | North Goa, South Goa | Low-grade Hematite | Major exporter of iron ore through Mormugao Port |
| Maharashtra | Gadchiroli, Chandrapur | Hematite | Important producer in central India |
| Andhra Pradesh | Anantapur, Kurnool | Magnetite & Hematite | Significant reserves of both ore types |
| Rajasthan | Jaipur, Udaipur, Bhilwara | Magnetite | Limited but economically important deposits |
| Tamil Nadu | Salem, Tiruvannamalai, Tiruchirappalli | Magnetite | Known for magnetite reserves |
| Madhya Pradesh | Jabalpur, Balaghat | Hematite | Moderate iron ore reserves used by local steel industries |
PYQs on Core Sector Industries
| Exam | Year | Question | Answer |
| UPSC Prelims | 2013 | Which one of the following minerals is the chief raw material for the iron and steel industry?
A. Bauxite B. Copper C. Iron Ore D. Manganese |
C. Iron Ore |
| UPSC Prelims | 2015 | Magnetite is considered a better quality iron ore than hematite because:
A. It contains less iron B. It contains a higher percentage of iron C. It is found only in plains D. It is used only for exports |
B. It contains a higher percentage of iron |
| SSC CGL | 2022 | Which state is the largest producer of iron ore in India?
A. Karnataka B. Odisha C. Chhattisgarh D. Goa |
B. Odisha |
| SSC CHSL | 2021 | Bailadila Iron Ore Mines are located in which state?
A. Odisha B. Karnataka C. Chhattisgarh D. Jharkhand |
C. Chhattisgarh |
| RRB NTPC | 2022 | Noamundi Iron Ore Mine is situated in:
A. Odisha B. Jharkhand C. Goa D. Maharashtra |
B. Jharkhand |
| SSC MTS | 2023 | Hematite is an ore of:
A. Aluminium B. Copper C. Iron D. Zinc |
C. Iron |
| NDA | 2021 | Which iron ore has the highest iron content?
A. Limonite B. Siderite C. Hematite D. Magnetite |
D. Magnetite |
| CDS | 2020 | Which of the following states is famous for the Bailadila iron ore range?
A. Odisha B. Karnataka C. Chhattisgarh D. Goa |
C. Chhattisgarh |
| CAPF (AC) | 2019 | India’s richest deposits of hematite iron ore are mainly found in:
A. Indo-Gangetic Plains B. Peninsular Plateau C. Western Himalayas D. Thar Desert |
B. Peninsular Plateau |
| SSC CPO | 2020 | Which one of the following is NOT an iron ore?
A. Hematite B. Magnetite C. Limonite D. Bauxite |
D. Bauxite |
Grey Hornbill Returns to Gujarat’s Gir Forest After Six Decades
Conclusion on Government Updates Core Sector Index
The government’s move to take the Iron Ore industry on board the Core Sector Index is a significant reform in the industrial statistical framework of India. The Government also seeks to enhance the timeliness and reliability of industrial production data by introducing the group of nine core industries as compared to eight, and by changing the base year from 2011-12 to 2022-23. The new section on iron ore reflects an emerging trend of mining and steel generation in India and will constitute an invaluable help for policy decision making, investments and economic studies.
