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21 July 2026

Index of Core Industries growth

The Index of Core Industries is a critical macroeconomic indicator frequently cited in UPSC Mains for analyzing industrial growth, infrastructure performance, and the broader health of the Indian economy.

1 min read Day 7 of 15 2 questions 2 prelims

Notes

  • The Ministry of Commerce and Industry has released a new series of the Index of Core Industries (ICI) with a revised base year of 2022-23 (previously 2011-12).
  • The ICI now includes nine sectors, with the addition of iron ore as a new component.
  • Core industrial sectors recorded a growth of 5% in June 2026, the highest in five months.
  • Iron ore growth reached 43.9% in June 2026, though this is attributed partly to a statistical base effect from a 16.4% contraction in June 2025.
  • Other sectors showing growth in June 2026 include electricity (9.8%), cement (9.8%), steel (4.6%), and coal (1.4%).
  • Hydrocarbon-related sectors recorded negative growth: crude oil (-4.2%), natural gas (-7.4%), refinery products (-4.7%), and fertilisers (-3.3%).
  • Negative growth in hydrocarbon sectors is attributed to increased imports following a cooling of global crude prices and a slowdown in refinery product exports.

Part of a longer story

This is day 7 of 15 in Upgrades to India's statistical databases, which has been running since 21 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Discuss the significance of the Index of Core Industries (ICI) in measuring industrial performance in India. How does the revision of the base year and the inclusion of new sectors enhance the accuracy of this economic indicator? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The divergence in growth trends between core industrial sectors and hydrocarbon-based industries reflects broader shifts in the Indian economy. Analyze the factors contributing to this trend and discuss the implications of reliance on imports for energy-related sectors in the context of global price volatility. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. What is the new base year for the updated Index of Core Industries (ICI) released by the Ministry of Commerce and Industry?

  2. Which of the following sectors was recently added to the Index of Core Industries in the updated series?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-21/index-of-core-industries-growth