Context: Index of Core Industries UPSC
India’s Index of Core Industries grew 5% year-on-year in June 2026, the highest growth in five months.
The revised ICI series has updated its base year to 2022–23 and added Iron Ore as the ninth core industry.
Index of Core Industries
The Index of Core Industries measures the performance of India’s core industrial sectors.
These sectors form the backbone of industrial production.
Released By
Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry.
Core Industries
The revised list includes:
- Coal
- Crude Oil
- Natural Gas
- Refinery Products
- Fertilisers
- Steel
- Cement
- Electricity
- Iron Ore
Earlier, there were eight core industries. Iron Ore has been added in the revised series.
Base Year
The base year has been revised from 2011–12 to 2022–23.
The revised series includes updated:
- Sectoral weights
- Methodology
- Industrial coverage
ICI and IIP
ICI
ICI is a leading indicator of industrial activity.
It constitutes about 40% of the weight of the Index of Industrial Production.
IIP
The Index of Industrial Production is released by the National Statistics Office under the Ministry of Statistics and Programme Implementation.
It measures the performance of:
- Mining
- Manufacturing
- Electricity sectors
Significance
1. Industrial Momentum
Growth in core sectors indicates improved industrial activity.
2. Policy Indicator
ICI helps policymakers track early trends in industrial production.
3. Infrastructure Link
Core sectors such as steel, cement, electricity and coal are closely linked to infrastructure growth.
4. Economic Health
A rise in core sector output supports manufacturing, construction and broader economic activity.
Key Takeaway
The 5% core sector growth shows stronger industrial activity, while the inclusion of Iron Ore makes the index more aligned with India’s current industrial structure.
