First Press Release of Index of Core Industries of New Series with Base Year 2022-23

The Office of Economic Adviser has released the first press release of the Index of Core Industries (ICI) with a new base year of 2022-23, marking a significant update in industrial performance metrics. This is crucial for UPSC aspirants, particularly for GS Paper 3, as it reflects changes in economic indicators. Last Updated: 21-07-2026

Key Facts About Index of Core Industries (ICI)

• The Index of Core Industries (ICI) is a monthly economic indicator measuring the production performance of nine core infrastructure industries.
• The new base year for ICI is 2022-23, updated from the previous 2011-12 series.
• Core industries account for 32.88% of the Index of Industrial Production (IIP) under the new base year.
• The revised ICI includes Iron Ore as the ninth core industry, reflecting its significance in steel manufacturing.
• Electricity holds the highest weight in the ICI at 30.93%, followed by Refinery Products at 22.57%.
• A Linking Factor of 1.47 has been introduced to maintain historical comparability between the old and new series.
• The ICI recorded a 5.0% year-on-year growth in June 2026, driven by Iron Ore and Electricity.

Significance of ICI in India's Economic Goals

The Index of Core Industries is crucial for assessing the health of India's infrastructure sectors, which are pivotal to achieving the country's economic growth targets. The inclusion of Iron Ore highlights India's focus on enhancing steel production capabilities, aligning with the 'Make in India' initiative. The ICI serves as a leading indicator for industrial activity, helping policymakers identify supply-side bottlenecks and strategize economic policies. India's infrastructure growth is vital for improving global competitiveness and achieving sustainable development goals.

UPSC Relevance

• GS Paper 3: Economic Development - Industrial Growth, Infrastructure
• Prelims: Questions on the composition and significance of the ICI, changes in the new series
• Mains: Analytical themes on industrial policy, infrastructure development, and economic indicators
• Essay Paper: Topics on economic reforms, industrial growth, and infrastructure development

FAQ Section

• What is the Index of Core Industries (ICI)?
  The Index of Core Industries (ICI) is a monthly economic indicator compiled by the Office of Economic Adviser (OEA), DPIIT, measuring the production performance of nine core infrastructure industries that collectively account for 32.88% of the Index of Industrial Production (IIP).
• What are the major changes introduced in the revised ICI (Base Year 2022-23)?
  The revised series adds Iron Ore as the ninth core industry, adopts gross steel production data, excludes Coal Middling and Washed Coal to eliminate double counting, revises sectoral weights, and introduces a Linking Factor (1.47) for continuity with the previous series.
• Why is the Index of Core Industries important for India's economy?
  The ICI serves as a leading indicator of industrial activity, helping policymakers monitor infrastructure sector performance, identify supply-side bottlenecks, and assess overall industrial and economic growth.
• How is the Index of Core Industries (ICI) different from the Index of Industrial Production (IIP)?
  The ICI measures production in nine core infrastructure industries and functions as a leading subset of the IIP, whereas the IIP measures overall industrial production across the Manufacturing, Mining, and Electricity sectors.
• Why are base year revisions undertaken in indices like the ICI?
  Base year revisions ensure that economic indices reflect the current industrial structure, adopt improved methodologies, update sectoral weights, and provide more accurate and internationally comparable estimates of industrial performance.