Context:

• The Government of India has released the revised series of the Index of Core Industries (ICI), changing its base year from 2011–12 to 2022–23.

Key Highlights:

• The Index of Core Industries (ICI) is a key economic indicator used to measure the health of India's core infrastructure sectors.
• Released by: Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry.
• The base year of ICI has now been aligned with the Gross Domestic Product (GDP), Wholesale Price Index (WPI), and Index of Industrial Production (IIP), ensuring uniformity across major macroeconomic indicators.
• New Base Year: 2022–23 (Previous Base Year: 2011–12).
• Total Core Industries: Increased to 9 (Earlier 8).
• Newly Added Industry: Iron Ore has been included as the ninth core industry.
• Committee: The revision has been carried out based on the recommendations of the Praveen Mahto Committee.
• Weight in IIP: The combined weight of these 9 core industries in the Index of Industrial Production (IIP) is now 32.88%, compared to 40.27% under the previous series.

Key Features of the New ICI Series:

• Increase in Number of Core Industries (From 8 to 9): Iron Ore has been included as the ninth core industry, considering its growing importance in industrial development and steel production.

Rebalancing of Weight in IIP:

• Combined Weight: Under the new base year (2022–23), the total weight of the nine core industries in the IIP has been revised to 32.88%, down from 40.27% in the 2011–12 series.
• This decline reflects the increasing contribution of emerging sectors such as manufacturing and services in the Indian economy.

Methodological Improvements:

• Removal of Double Counting: In the coal sector, only raw coal will now be included. Washed coal and coal middlings have been excluded.
• Alignment with IIP: The steel index will now be compiled using gross production data instead of net production.
• Linking Factor: A linking factor of 1.47 has been introduced for the overall index to maintain historical continuity between the old and new series.

Nine Core Industries and Their Revised Weights:

Why Was the Base Year Revised?

• Reflecting Structural Changes: India's consumption and production patterns have changed significantly since 2011.
• Uniformity Across Macroeconomic Indicators: Following this revision, all major economic indicators—GDP, WPI, IIP, and ICI—are now aligned to the common base year 2022–23.
• Improved Data Accuracy: Adoption of gross steel production and elimination of double counting in coal will provide a more accurate picture of industrial performance.

Index of Core Industries (ICI):

• It is a monthly production volume index that measures the combined as well as individual performance of India's core infrastructure industries.
• Nodal Agency: The index is compiled and released every month by the Office of Economic Adviser (OEA), DPIIT, Ministry of Commerce & Industry.
• Frequency: Released monthly.
• Who Releases IIP? The Index of Industrial Production (IIP) is released by the Ministry of Statistics and Programme Implementation (MoSPI).
• Coverage: The index covers nine core industries—Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity, and Iron Ore.

Impact of the Revised Series:

• India's core industries recorded a 5.0% growth in June 2026, the highest growth rate in the last five months.
• This marks the strongest performance in five months. Core sector growth was 1.1% in June 2025 and 3.2% in May 2026.