Index of Core Industries (ICI)

The Office of Economic Adviser (OEA), under the Department for Promotion of Industry and Internal Trade (DPIIT), has released a revised Index of Core Industries (ICI), shifting the base year from 2011–12 to 2022–23. The revised index recorded 5% growth in June 2026, the highest in five months, driven largely by the inclusion of iron ore as a new core industry.

What is the ICI?

• A monthly indicator measuring the production performance of India's key infrastructure and industrial sectors.

• Acts as an early or leading indicator of industrial activity.

• Significantly influences the Index of Industrial Production (IIP), since core industries make up a large share of IIP weight.

Core Industries Under the Revised ICI

The index now covers nine industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity, and Iron Ore (newly added). Together, these account for 32.88% of the weight in the IIP.

Evolution of the ICI

• Initial series launched in 1980–81.

• First revision carried out in 1993–94.

• Fertilisers and Natural Gas added in 2004–05.

• Previous base year set at 2011–12.

• Current revised base year is 2022–23, with Iron Ore added.

Major Changes in the Revised Series

Inclusion of Iron Ore

• Added on the recommendation of the Praveen Mahto Committee (2025).

• Assigned a weight of 4.9% in the revised index.

• Recorded a sharp 43.9% growth in June 2026, significantly lifting overall core sector growth.

Updated Sectoral Weights

• Electricity now holds the highest weight, at 30.93%, overtaking refinery products.

• Weights of coal, crude oil, and refinery products have declined.

• Iron ore enters with a 4.9% weight.

Methodological Improvements

• Steel index is now compiled using gross production data.

• Coal index is restricted to raw coal only; washed coal and coal middlings are excluded to avoid double counting.

• Weights have been realigned with the revised IIP (2022–23 base year).

Performance of Core Industries — June 2026

Growth Drivers

• Iron Ore grew 43.9%, aided by a low base and strong production.

• Electricity grew 9.8%, driven by higher power demand amid heatwaves and rainfall deficit.

• Cement grew 9.8%.

• Steel grew 4.6%.

• Coal grew 1.4%, its first rise after three months of decline.

Sectors Under Pressure

• Natural Gas declined 7.4%, its 24th consecutive monthly decline.

• Crude Oil declined 4.2%, its 18th consecutive monthly decline.

• Fertilisers declined 3.3%, the fourth consecutive decline.

• Refinery Products declined 4.7%, the third straight monthly decline.

• The cause: lower global crude oil prices increased imports, which reduced domestic production of petroleum products and fertilisers.

Revision of Historical Growth Estimates

• 2024–25 growth revised down from 6.9% to 4.3%.

• 2025–26 growth revised up from 1.1% to 3%.

• May 2026 growth revised up from 1% to 3.2%.

India's Three Monthly Economic Indicators — ICI, IIP, and ISP

ICI tracks production across nine core sectors, is released by the OEA under DPIIT, and uses 2022–23 as its base year.

IIP measures industrial output across Mining, Manufacturing, Electricity, and Gas Supply and Water Supply, Sewerage and Waste Management (newly added). It is released by the National Statistical Office (NSO), MoSPI, with a base year of 2022–23.

ISP (Index of Services Production) is India's first official monthly indicator measuring output in the formal services sector. It is released by MoSPI, with a base year of 2024–25 on a trial basis. It covers 19 service sub-sectors, representing nearly 60% of India's services sector, and relies on GST data and administrative records rather than direct production surveys. Health and education are currently excluded due to GST exemption but are proposed to be included through administrative data, which could raise coverage to around 80%.

How they relate: ICI is a leading indicator of IIP, since core industries contribute 32.88% of IIP's weight. ISP complements IIP by enabling monthly tracking of the services sector, together giving a more comprehensive picture of overall economic activity.

Significance for the Economy

The revised ICI strengthens India's economic statistics by providing an early signal of industrial and economic momentum, supporting evidence-based policy formulation, helping forecast GDP growth and industrial performance, tracking supply-side inflationary pressures, and improving the representativeness and accuracy of official statistics through an updated base year and improved methodology.

Conclusion

The revision of the ICI to a 2022–23 base year reflects more than a statistical update — it captures the changing structure of the Indian economy, where electricity has overtaken refinery products as the dominant core sector and a new sector, iron ore, has been formally recognised for its rising industrial weight. While the headline growth of 5% in June 2026 appears strong, it masks an uneven picture: mining and power-linked sectors such as iron ore, electricity, and cement are driving the gains, while the petroleum and fertiliser complex continues a prolonged slump caused by falling global crude prices and rising imports. For examination purposes, the key points to remember are the addition of iron ore as the ninth core industry, electricity's new position as the highest-weighted sector, the shift from the 2011–12 to the 2022–23 base year, and the ICI's continuing role as a leading indicator feeding into the IIP. Together, these changes show India modernising its economic measurement framework to better reflect present-day industrial realities.