Why in news?
The Index of Core Industries grew 7.9% in September 2026, the highest since the new series data began in April 2024.
UPSC Relevance
Prelims: Index of Core Industries (ICI), weights of core industries, new base year 2022-23, ICI vs IIP, releasing agencies.
What is the Index of Core Industries (ICI)?
- Meaning: A monthly production volume index that measures the combined and individual performance of key infrastructure-based industries.
- Released by: Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
- Lead indicator: It comes out before the Index of Industrial Production (IIP) and gives an early signal of overall industrial performance, since these industries supply inputs to almost all other sectors.
- Base year: Revised from 2011-12 to 2022-23 in July 2026. The new series was released on 20 July 2026 with a back series from April 2023.
- Share in IIP: The core industries now make up 32.88% of the weight of items in the IIP, down from 40.27% in the old series.
- Iron ore added: Included because of its heavy use in industrial production, especially steel. The basket grew from eight to nine industries.
Note: It is no longer the ‘Index of Eight Core Industries’. With iron ore added, there are now nine core industries.
The Nine Core Industries and Their Weights
| Industry | Weight (%) Base 2022-23 | Change |
|---|---|---|
| Electricity | 30.932 | Big rise; now the highest |
| Refinery Products | 22.572 | Fall; was highest earlier |
| Steel | 17.584 | Almost the same |
| Crude Oil | 7.430 | Fall |
| Coal | 5.596 | Sharp fall |
| Iron Ore | 4.905 | Newly added |
| Cement | 4.410 | Fall |
| Natural Gas | 3.841 | Fall |
| Fertilizers | 2.731 | Slight rise; still the lowest |
| Total | 100 |
Easy way to remember (descending order of weight): Electricity > Refinery Products > Steel > Crude Oil > Coal > Iron Ore > Cement > Natural Gas > Fertilizers.
Source: OEA, DPIIT – FAQs on the new series of ICI (Base Year 2022-23).
ICI vs IIP
| Basis | Index of Core Industries | Index of Industrial Production |
|---|---|---|
| Released by | OEA, DPIIT (Ministry of Commerce and Industry) | National Statistics Office (NSO), MoSPI |
| Coverage | Nine core industries only | Broad industry – mining, manufacturing and electricity |
| Base year | 2022-23 | 2022-23 |
| Role | Lead indicator; released earlier | Comprehensive measure of industrial output |
| Link | Core industries carry 32.88% of IIP weight | ICI weights are derived from IIP weights |
UPSC PYQ (Prelims 2015)
Q. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?
(a) Coal production
(b) Electricity generation
(c) Fertilizer production
(d) Steel production
Answer: (b)
Note: In the 2011-12 series, refinery products had the highest weight. In the new 2022-23 series, electricity is once again the highest.
Practice MCQ
Q1. With reference to the revised Index of Core Industries (Base Year 2022-23), consider the following statements:
1. Iron ore has been added, raising the number of core industries from eight to nine.
2. Refinery products carry the highest weight in the revised index.
3. The weights of the index are derived from the Index of Industrial Production (2022-23) series.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: (b)
Explanation: Statement 2 is incorrect. Electricity has the highest weight (30.932%), followed by refinery products (22.572%).
Q2. Arrange the following core industries in descending order of their weights in the Index of Core Industries (Base Year 2022-23):
1. Coal
2. Steel
3. Cement
4. Electricity
Select the correct answer using the code given below:
(a) 4-2-1-3
(b) 2-4-1-3
(c) 4-1-2-3
(d) 4-2-3-1
Answer: (a)
Explanation: Electricity (30.932) > Steel (17.584) > Coal (5.596) > Cement (4.410).
Tell Google you want more of this.
Add Anantam IAS as a preferred sourceOne tap, and this site shows up more often in your own Top Stories, AI Overviews and AI Mode. Remove it any time.
