CDS Economics · National Income, Growth and Development Indicators
Industrial Policy
How industrial output is measured (the IIP and the eight core industries), the Maharatna and Navratna companies, and the schemes from Make in India to PM MITRA.
Why this matters
Twelve CDS questions, three of them in 2026. Scheme questions name the scheme and ask its aim or its year; the core industries were asked twice (2018 (I) and 2022 (II)).
Concept 1 of 3: The IIP and the eight core industries
The Index of Industrial Production tracks how much factories, mines and power plants produce each month, against a base year. Eight basic industries feed almost every other one, so they are tracked in their own index and make up about two fifths of the IIP.
Definition
The facts:
- IIP: released monthly by the NSO (MoSPI), base year 2011-12.
- Use-based weights: primary goods about 34 per cent (the largest), intermediate goods about 17, consumer non-durables about 15, consumer durables about 13, infrastructure and construction goods about 12, capital goods about 8.
- Index of Eight Core Industries: compiled by the Office of the Economic Adviser, DPIIT. The eight carry about 40.27 per cent of the IIP's weight.
- The eight, by weight: refinery products (about 28 per cent, the largest), electricity, steel, coal, crude oil, natural gas, cement and fertilizers (the smallest).
- In 2015-16, natural gas output fell, while coal, refinery products and fertilizers grew.
| Core industry | Weight in the core index (per cent) |
|---|---|
| Refinery products | 28.04 |
| Electricity | 19.85 |
| Steel | 17.92 |
| Coal | 10.33 |
| Crude oil | 8.98 |
| Natural gas | 6.88Q CDS 2018 (I): natural gas was the core industry with negative growth in 2015-16. |
| Cement | 5.37 |
| Fertilizers | 2.63 |
Practice this conceptself-check · 4 quick reps
The same idea in a real exam question:
CDS · 2022 · CDS (II) 2022 — General Knowledge · Q9Moderate
Example 1 · National Income, Growth and Development Indicators · Industrial Policy
The Department for Promotion of Industry and Internal Trade (DPIIT) has revised the base year index of Eight Core Industries having a combined weight of about 40·27 percent in the Index of Industrial Production. Which one of the following is not one of the Eight Core Industries ?
Two different bodies
The IIP comes from the NSO under MoSPI; the core industries index comes from the Office of the Economic Adviser in DPIIT. Do not give both to one office.
Primary goods outweigh capital goods
In the use-based IIP, primary goods (mining, electricity and the like) weigh about 34 per cent; capital goods only about 8.
Concept 2 of 3: Maharatna, Navratna and Miniratna companies
The government grades its large companies (central public sector enterprises) so that the best ones can invest and decide without asking a ministry each time. The grade sets how much freedom they get: Maharatna most, then Navratna, then Miniratna.
Definition
The grades:
- Miniratna (1997, Categories I and II): smaller profit-making companies.
- Navratna (1997): more freedom to invest; a company must be a Miniratna Category I first.
- Maharatna (2010): the largest; a company must be a Navratna, listed, with large turnover, net worth and profit.
- Coal India Limited: Maharatna (2011) under the Ministry of Coal, the largest coal producer in the world, headquarters Kolkata.
- IndianOil, GAIL and BPCL are Maharatna; Bharat Electronics (BEL) is Navratna. A status can be upgraded, so it holds for the year asked.
| Company | Status | Note |
|---|---|---|
| Coal India Limited | Maharatna | World's largest coal producer; headquarters Kolkata, not RanchiQ |
| IndianOil Corporation | Maharatna | Oil refining and marketing |
| GAIL (India) | Maharatna | Natural gas |
| Bharat Petroleum | Maharatna | Upgraded in 2017 |
| Bharat Electronics | Navratna | Defence electronics |
Practice this concept3 quick reps
The same idea in a real exam question:
CDS · 2021 · CDS (I) 2021 — General Knowledge · Q66Hard
Example 2 · National Income, Growth and Development Indicators · Industrial Policy
Which mega public sector undertaking is designated with 'Navratna' status ?
Coal India sits in Kolkata
Coal India's headquarters is in Kolkata, West Bengal. Ranchi hosts one of its subsidiaries (Central Coalfields), which is the usual distractor.
Concept 3 of 3: Industrial schemes and missions
Since 2014 the government has launched a string of schemes to bring investment into Indian factories and new firms. CDS names one and asks what it does or when it began; the name itself usually tells you the aim.
Definition
In time order:
- Invest India (2009): a not-for-profit joint venture company and India's National Investment Promotion and Facilitation Agency, under DPIIT.
- Make in India (25 September 2014): to facilitate investment, foster innovation, build skills and build manufacturing infrastructure.
- Startup India (16 January 2016) and its Fund of Funds for Startups, ₹10,000 crore, run by SIDBI. A second fund of funds of about ₹10,000 crore (Budget 2025-26) aims at deep-tech and technology-led manufacturing startups.
- Atmanirbhar Bharat (May 2020): with production-linked incentive (PLI) schemes, to raise manufacturing and exports and to draw foreign firms to produce in India.
- PM MITRA (2021): Pradhan Mantri Mega Integrated Textile Region and Apparel parks, seven large textile parks covering the whole chain from fibre to garment.
- MSMEs: the second-largest employer after agriculture; low capital per job, so they suit backward regions.
- Sunrise sectors: new, fast-growing industries, such as food processing.
| Scheme | Year | Aim |
|---|---|---|
| Invest India | 2009 | National investment promotion and facilitation agency; non-profit joint ventureQ |
| Make in India | 2014 | Investment, innovation, skills, manufacturing infrastructureQ CDS 2019 (II): launched in 2014, not 2018. |
| Startup India Fund of Funds 2.0 | 2025 | About ₹10,000 crore for deep-tech startups, run through SIDBIQ |
| Atmanirbhar Bharat | 2020 | Manufacturing and exports; foreign investment in domestic productionQ |
| PM MITRA | 2021 | Integrated textile and apparel parks |
Practice this concept4 quick reps
The same idea in a real exam question:
CDS · 2026 · CDS (I) 2026 — General Knowledge · Q117Moderate
Example 3 · National Income, Growth and Development Indicators · Industrial Policy
Which one of the following statements is correct about the PM-MITRA scheme?
SIDBI runs the startup fund, not NITI Aayog
The Fund of Funds for Startups is operated through SIDBI. NITI Aayog is a policy think tank and runs no such fund.
Old sectors are not sunrise sectors
Sunrise sectors are new and fast-growing. Manufacturing, textiles and services as a whole are long-established, so they are not the answer.
Summary — formulas & gotchas at a glance
A revision cheat-sheet for the formulas and gotchas above. Click any concept name to jump back to its full explanation.
Reference tables (3)
The IIP and the eight core industries8 rows
| Core industry | Weight in the core index (per cent) |
|---|---|
| Refinery products | 28.04 |
| Electricity | 19.85 |
| Steel | 17.92 |
| Coal | 10.33 |
| Crude oil | 8.98 |
| Natural gas | 6.88Q CDS 2018 (I): natural gas was the core industry with negative growth in 2015-16. |
| Cement | 5.37 |
| Fertilizers | 2.63 |
Maharatna, Navratna and Miniratna companies5 rows
| Company | Status | Note |
|---|---|---|
| Coal India Limited | Maharatna | World's largest coal producer; headquarters Kolkata, not RanchiQ |
| IndianOil Corporation | Maharatna | Oil refining and marketing |
| GAIL (India) | Maharatna | Natural gas |
| Bharat Petroleum | Maharatna | Upgraded in 2017 |
| Bharat Electronics | Navratna | Defence electronics |
Industrial schemes and missions5 rows
| Scheme | Year | Aim |
|---|---|---|
| Invest India | 2009 | National investment promotion and facilitation agency; non-profit joint ventureQ |
| Make in India | 2014 | Investment, innovation, skills, manufacturing infrastructureQ CDS 2019 (II): launched in 2014, not 2018. |
| Startup India Fund of Funds 2.0 | 2025 | About ₹10,000 crore for deep-tech startups, run through SIDBIQ |
| Atmanirbhar Bharat | 2020 | Manufacturing and exports; foreign investment in domestic productionQ |
| PM MITRA | 2021 | Integrated textile and apparel parks |
Watch out for (5)
- Two different bodies→ The IIP and the eight core industries
- Primary goods outweigh capital goods→ The IIP and the eight core industries
- Coal India sits in Kolkata→ Maharatna, Navratna and Miniratna companies
- SIDBI runs the startup fund, not NITI Aayog→ Industrial schemes and missions
- Old sectors are not sunrise sectors→ Industrial schemes and missions
Test yourself on National Income, Growth and Development Indicators
20 past CDS questions from this chapter, timed at 20 minutes and marked the way the exam marks it. You see your score and every answer the moment you finish. Free to start.