UPSC Prelims Practice Questions — Office of Economic Adviser to Release Revised Index of Core Industries Series with Base Year 2022–23

Q1. With reference to the revised Index of Core Industries (base year 2022-23), which of the following is/are correctly identified as being among its nine core industries?

  1. Iron Ore
  2. Cement
  3. Aluminium
  4. Copper
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 3
  • D. 1, 2, 3 and 4

Q2. The revised Index of Core Industries with base year 2022-23 is to be compiled and released by which one of the following?

  • A. Office of Economic Adviser, DPIIT, Ministry of Commerce & Industry
  • B. National Statistical Office, Ministry of Statistics and Programme Implementation
  • C. Central Statistics Office, Ministry of Finance
  • D. Reserve Bank of India, Department of Statistics and Information Management

Q3. In the context of India's industrial statistics, the term 'core industries' as tracked by the Index of Core Industries is best described as which one of the following?

  • A. A set of basic and infrastructure industries whose output feeds into other industrial activity and which together form a defined weight of the Index of Industrial Production
  • B. The industries classified as 'capital goods' in the use-based classification of the Index of Industrial Production
  • C. The public-sector heavy industries that were reserved under the earlier industrial licensing policy
  • D. The industries identified by NITI Aayog as strategic sectors for production-linked incentive schemes

Q4. Under the 2011-12 base-year series (the series being superseded), the number of industries constituting the Index of Core Industries was exactly:

  • A. Six
  • B. Seven
  • C. Eight
  • D. Nine

Q5. Consider the following statements comparing the Index of Core Industries (ICI) and the Index of Industrial Production (IIP): 1. The ICI is compiled by the OEA under DPIIT, whereas the IIP is compiled by the NSO under MoSPI. 2. The weights of the industries in the ICI are derived from the weights of the corresponding items in the IIP. 3. In their latest revised series, both the ICI and the IIP continue to use 2011-12 as the base year. Which of the statements given above is/are correct?

  1. The ICI is compiled by the OEA under DPIIT, whereas the IIP is compiled by the NSO under MoSPI.
  2. The weights of the industries in the ICI are derived from the weights of the corresponding items in the IIP.
  3. In their latest revised series, both the ICI and the IIP continue to use 2011-12 as the base year.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. Which of the following statements about the relationship between the Index of Core Industries (ICI) and the Index of Industrial Production (IIP) is/are correctly stated?

  1. The eight core industries accounted for 40.27% of the weight of the IIP under the 2011-12 series.
  2. The items covered by the ICI form a subset of the items covered by the IIP.
  3. The ICI is released at a higher frequency than the IIP.
  4. The revised ICI weights are obtained from the IIP 2022-23 weights redistributed pro-rata to total 100.
  • A. 1, 2 and 4
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4

Q7. With reference to the new series of the Index of Industrial Production (base year 2022-23), which of the following is/are correctly identified?

  1. It retains Mining, Manufacturing and Electricity as broad sectors.
  2. It newly adds Gas Supply and Water Supply, Sewerage & Waste Management as covered activities.
  3. It is compiled and released by the National Statistical Office under MoSPI.
  4. It shifts the base year from 2011-12 directly to 2017-18.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 2, 3 and 4

Q8. Regarding the new IIP series with base year 2022-23, which of the following statements is/are NOT correct?

  1. The base year was revised from 2011-12 to 2022-23.
  2. Gas Supply was newly added as a covered activity.
  3. The earlier six use-based categories were replaced by a new eight-category scheme.
  4. The index is released monthly with a time lag of 28 days from the reference month.
  • A. 3 only
  • B. 1 and 2 only
  • C. 3 and 4 only
  • D. 2 only

Q9. The Office of Economic Adviser, which is releasing the revised Index of Core Industries series along with its back series, functions as an attached/subordinate office under which one of the following?

  • A. Department for Promotion of Industry and Internal Trade (DPIIT)
  • B. Department of Commerce
  • C. Directorate General of Foreign Trade (DGFT)
  • D. Department of Economic Affairs

Q10. In the context of the periodic revision of indices such as the ICI and IIP, revising the 'base year' most precisely refers to which one of the following?

  • A. Updating the reference year set equal to 100 together with the item basket and weighting structure so that the index better reflects the current structure of the economy
  • B. Merely changing the calendar year against which year-on-year growth rates are computed, while keeping the item basket and weights unchanged
  • C. Adjusting the index values to remove the effect of price inflation so that only real output changes are captured
  • D. Revising the sample of factories and establishments surveyed while retaining the original reference year and weights