Why In News?

Index of Core Industries (ICI) accelerated to a historic series-high growth rate of 7.9% in September 2026, up from 5.9% in August 2026.

What Is The Index Of Core Industries (ICI)?

The Index of Core Industries (ICI) is a monthly production volume index compiled and published by the Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

Base Year: Revised from 2011–12 to 2022–23 under the recommendations of the Praveen Mahto Committee. This revision formally expanded the core basket from 8 to 9 core industries by adding iron ore.

Weightage: Under the revised 2022–23 series, the nine core industries account for 32.88% of the total weight in the broader Index of Industrial Production (IIP) compiled by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), down from 40.27% in the 2011–12 series.

IIP Broad Sectoral Weights (Base 2022–23 = 100)

  • Manufacturing — 76.062%

  • Mining & Quarrying — 11.053%

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  • Electricity & Gas Supply — 10.865%

  • Water Supply, Sewerage & Waste Management — 2.020%  

Sectoral Weight Hierarchy (Base 2022–23=100)

  • Electricity carries the highest relative weight in the ICI at 30.93%

  • Petroleum refinery products (22.57%)

  • Steel (17.58%)

  • Crude oil (7.43%)

  • Coal (5.60%)

  • Iron ore (4.91%)

  • Cement (4.41%)

  • Natural gas (3.84%)

  • Fertilizers holding the lowest weight at 2.73%.

Source: THEHINDU

PRACTICE QUESTION

Q. With reference to the Index of Industrial Production (IIP) and the Index of Core Industries (ICI), consider the following statements:

  1. The Index of Core Industries is compiled monthly by the Office of the Economic Adviser (OEA), DPIIT, whereas the all-India IIP is released by the National Statistics Office (NSO), MoSPI.

  2. The nine core industries account for over 50% of the total weight in the Index of Industrial Production under the 2022–23 base series.

Which of the statements given above is/are correct?

(A) 1 only

(B) 2 only

(C) Both 1 and 2

(D) Neither 1 nor 2

Answer: (A)

Explanation: 

Statement 1 is correct: The Office of the Economic Adviser (OEA), DPIIT (Department for Promotion of Industry and Internal Trade) compiles and releases the Index of Core Industries (ICI) monthly, while the all-India Index of Industrial Production (IIP) is compiled and released by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).

Statement 2 is incorrect: Under the updated base series (2022–23), the core industries account for 32.88% (combined IIP weight) of the total weight in the Index of Industrial Production, not over 50%. (Note: The core industries comprise nine sectors in the 2022–23 base series, including Iron Ore alongside the traditional eight sectors).