Index of Core Industries (Indian Economy)
Index of Core Industries (Indian Economy)
Why In News:
India's core industries grew 5.0 percent year-on-year in June 2026, a five-month high, up from 3.2 percent in May.
This release also marked the debut of a revised Index of Core Industries (ICI) using 2022-23 as the new base year, replacing the earlier 2011-12 series, and for the first time added iron ore as a ninth core industry.
Source: The Indian Express, Page 15, and The Hindu, Page 6, 21 July 2026, 'New series: Jun core sector growth 5%, iron ore output jumps 44%' / 'Core sectors grow at five-month high of 5%'
Index of Core Industries (ICI)
The Index of Core Industries (ICI) is compiled and released by the Office of the Economic Adviser (OEA) under DPIIT.
It used to track the performance of eight key sectors-coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity-both individually and collectively.
These core industries together hold a weight of 40.27% in the Index of Industrial Production (IIP), highlighting their crucial role in determining overall industrial growth.
What Changed in the New Series
Iron ore has been added as NINTH industry to the traditional eight-industry basket, reflecting its intensive use in industrial production.
Steel will now be tracked using gross production rather than net figures, while the coal index has been narrowed to raw coal alone to eliminate double-counting.
Sectoral weights have been recalibrated: electricity now carries the highest weight at 30.93 percent, followed by refinery products (22.57 percent) and steel (17.58 percent).
Key Facts for Prelims
The core industries together account for a large share of the weight in the Index of Industrial Production (IIP), making the ICI a key leading indicator of overall industrial momentum.
Basis
Index of Core Industries (ICI)
Index of Industrial Production (IIP)
Scope & Coverage
Covers only 9 core sectors: Iron ore, coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, electricity
Covers the entire industrial sector including manufacturing, mining, and electricity with a wider basket
Purpose & Use
Acts as a leading indicator, providing early signals of industrial growth trends
Measures overall industrial performance in the economy
Weight & Significance
Has a weight of 40.27% in IIP, indicating strong influence on industrial output
Represents aggregate industrial output; ICI is a subset of it