Eight Core Industries Index (ICI) (Indian Economy)
Eight Core Industries Index (ICI) (Indian Economy)
Why In News:
The Eight Core Industries (ECI) Index for May 2026 recorded a growth of only 0.5% (Year-on-Year), marking a sharp industrial slowdown.
What is the Eight Core Industries Index?
The ECI is a composite index released monthly by the Office of the Economic Adviser (OEA), Ministry of Commerce and Industry.
It measures the monthly output performance of eight key industrial sectors that have the most significant bearing on India's overall industrial production.
The Eight Industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity.
Combined ECI weight in IIP: 40.27%, making it a critical leading indicator of industrial health.
Base Year: 2011-12 for both the ECI and IIP.
Linkage with IIP
The Index of Industrial Production (IIP) is released by National Statistical Office (NSO) under MoSPI and measures quantum of change across Mining, Manufacturing, and Electricity sectors.
Since ECI constitutes 40.27% of IIP, a decline in core industries typically foreshadows a weak IIP reading for that month.
May 2026 Sectoral Performance
Top Performers: Refinery Products (28.04%) → Electricity (19.85%) → Steel (17.92%) → Coal (10.33%)
Declining Sectors: Coal (-9.3%), Refinery Products (-8.7%), Natural Gas (-4.9%), Crude Oil (-4.6%), reflecting disruptions in fossil fuel output and refining capacity stress.