{"id":114458,"date":"2026-07-22T11:08:19","date_gmt":"2026-07-22T05:38:19","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=114458"},"modified":"2026-07-22T11:08:19","modified_gmt":"2026-07-22T05:38:19","slug":"revised-index-of-core-industries-ici","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/revised-index-of-core-industries-ici\/","title":{"rendered":"Revised Index of Core Industries (ICI) &#8211; Iron Ore Inclusion and India&#8217;s Statistical Overhaul"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Index of Core Industries (ICI) Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Office of Economic Adviser (<\/span><b>OEA<\/b><span style=\"font-weight: 400;\">) under the Department for Promotion of Industry and Internal Trade (<\/span><b>DPIIT<\/b><span style=\"font-weight: 400;\">) has released the revised Index of Core Industries (ICI) with <\/span><b>2022\u201323<\/b><span style=\"font-weight: 400;\"> as the new base year, replacing 2011\u201312.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revised index recorded 5% growth in June, the highest in five months, largely driven by the inclusion of <\/span><b>iron ore<\/b><span style=\"font-weight: 400;\"> as the <\/span><b>ninth <\/b><span style=\"font-weight: 400;\">core industry.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>What is the Index of Core Industries (ICI)?<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ICI is a <\/span><b>monthly <\/b><span style=\"font-weight: 400;\">indicator measuring the production performance of India&#8217;s key infrastructure and industrial sectors.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It serves as an <\/span><b>early indicator <\/b><span style=\"font-weight: 400;\">of industrial activity and significantly influences the Index of Industrial Production (<\/span><b>IIP<\/b><span style=\"font-weight: 400;\">).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Core Industries under the revised ICI (2022\u201323 Base Year):\u00a0<\/b><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The index now covers 9 industries &#8211; Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity, and Iron Ore (newly added).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These sectors together account for <\/span><b>32.88%<\/b><span style=\"font-weight: 400;\"> of the weight in the IIP, making ICI an important leading indicator of industrial growth.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Timeline of ICI evolution: <\/b><span style=\"font-weight: 400;\">Initial series (1980\u201381), first revision (1993\u201394), Fertilisers and Natural Gas added (2004\u201305), and previous base year (2011\u201312).<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Major Changes in the Revised ICI<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Inclusion of iron ore:<\/b><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Iron ore has been added following the recommendations of the <\/span><b>Praveen Mahto<\/b><span style=\"font-weight: 400;\"> Committee (2025). It contributes 4.9% to the revised index.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Production surged 43.9% in June, significantly boosting overall core sector growth.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Updated sectoral weights: <\/b><span style=\"font-weight: 400;\">Major changes in weights reflect the current structure of the economy &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Electricity <\/b><span style=\"font-weight: 400;\">now carries the highest weight (30.93%), replacing refinery products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Weights of coal, crude oil and refinery products have declined.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Iron ore has been assigned a 4.9% weight.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Methodological improvements:<\/b><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Steel index is now compiled using gross production data.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Coal index includes only raw coal, excluding washed coal and coal middlings to avoid double counting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Weights have been aligned with the revised IIP (2022\u201323 base year).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Performance of Core Industries (June 2026)<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Growth drivers:<\/b><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Overall ICI growth:<\/b><span style=\"font-weight: 400;\"> 5% (highest in five months).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Iron ore:<\/b><span style=\"font-weight: 400;\"> 43.9% growth due to strong production and a low base effect.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Electricity<\/b><span style=\"font-weight: 400;\">: 9.8% growth, driven by higher power demand amid heatwaves and rainfall deficit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Cement<\/b><span style=\"font-weight: 400;\">: 9.8% growth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Steel<\/b><span style=\"font-weight: 400;\">: 4.6% growth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Coal<\/b><span style=\"font-weight: 400;\">: 1.4% growth after three months of decline.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sectors under pressure:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Production declined in petroleum-related industries &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Crude oil<\/b><span style=\"font-weight: 400;\">: \u20134.2% (18th consecutive monthly decline).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Natural gas<\/b><span style=\"font-weight: 400;\">: \u20137.4% (24th consecutive monthly decline).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Refinery products<\/b><span style=\"font-weight: 400;\">: \u20134.7% (third straight monthly decline).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Fertilisers<\/b><span style=\"font-weight: 400;\">: \u20133.3% (fourth consecutive decline).<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Lower global crude oil prices increased imports, reducing domestic production of petroleum products and fertilisers.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Revision of historical growth estimates: <\/b><span style=\"font-weight: 400;\">The revised series has altered earlier estimates &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>2024\u201325:<\/b><span style=\"font-weight: 400;\"> Core sector growth revised down from 6.9% to 4.3%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>2025\u201326:<\/b><span style=\"font-weight: 400;\"> Growth revised up from 1.1% to 3%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>May 2026 growth<\/b><span style=\"font-weight: 400;\">: Revised upward from 1% to 3.2%.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>ICI, IIP and ISP &#8211; India\u2019s Three Monthly Economic Indicators<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>ICI<\/b><span style=\"font-weight: 400;\">: Tracks production of 9 core sectors and released by OEA, DPIIT, with revised base year of 2022\u201323.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IIP<\/b><span style=\"font-weight: 400;\">: Measures industrial output across Mining; Manufacturing; Electricity; Gas Supply &amp; Water Supply, Sewerage and Waste Management (<\/span><b>newly added<\/b><span style=\"font-weight: 400;\">) and released by National Statistical Office (NSO), MoSPI, with a base year of 2022\u201323.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Index of Services Production (ISP)<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India&#8217;s <\/span><b>first <\/b><span style=\"font-weight: 400;\">official monthly indicator measuring output in the formal services sector, and released by MoSPI, with a base year of 2024\u201325 (trial).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It covers 19 service sub-sectors, representing nearly 60% of India&#8217;s services sector.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Uses GST data and administrative records, rather than direct production surveys.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Health and education are currently excluded due to GST exemption but are proposed to be included using administrative data, which could raise coverage to around 80%.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><b>Relationship:<\/b><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">ICI is a leading indicator of IIP, as core industries contribute 32.88% to the IIP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">ISP complements IIP, enabling monthly tracking of the services sector and providing a more comprehensive picture of economic activity.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Significance for the Economy<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revised ICI strengthens India&#8217;s economic statistics by &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Providing an early signal of industrial and economic momentum.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Supporting <\/span><b>evidence-based<\/b><span style=\"font-weight: 400;\"> policy formulation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Helping forecast GDP growth and industrial performance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Tracking supply-side inflationary pressures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Improving the representativeness and <\/span><b>accuracy <\/b><span style=\"font-weight: 400;\">of official statistics through an updated base year and improved methodology.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/index-of-core-industries-june-2026-iron-ore-growth-data-10795380\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Office of Economic Adviser (OEA) under the DPIIT has released the revised Index of Core Industries (ICI) with 2022\u201323 as the new base year, and including iron ore as the 9th core industry.<\/p>\n","protected":false},"author":19,"featured_media":77025,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[8850],"class_list":["post-114458","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-index-of-core-industries-ici","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/114458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=114458"}],"version-history":[{"count":2,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/114458\/revisions"}],"predecessor-version":[{"id":114460,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/114458\/revisions\/114460"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/77025"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=114458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=114458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=114458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}