Daily
250 words
7/10
Rating

24 July 2026

Index of Core Industries (ICI) update

The Index of Core Industries is a critical macroeconomic indicator frequently cited in UPSC exams to assess industrial performance and economic growth trends.

2 min read Day 9 of 15 2 questions 2 prelims

Notes

  • The Index of Core Industries (ICI) has been updated with a new series, including a new base year, revised weights, and improved methodologies.
  • The number of sectors covered in the ICI has increased from eight to nine with the inclusion of the iron ore sector.
  • Methodological improvements were implemented in the steel and coal sectors to eliminate double-counting.
  • Weightage shifts: Electricity now comprises over 30% of the index (up from <20%), while coal and natural gas weights have halved to 5.6% and 3.8% respectively.
  • June 2026 ICI growth was 5%, though this was partially influenced by a statistical base effect in iron ore and electricity sectors.
  • Systemic issues persist: Crude oil and natural gas sectors have shown continuous contraction for 18 and 24 months, respectively.
  • The ICI and WPI are currently managed by the Ministry of Commerce and Industry, while the CPI and IIP are managed by the Ministry of Statistics and Programme Implementation (MoSPI).

Part of a longer story

This is day 9 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 updating the Index of Core Industries (ICI) in reflecting the structural shifts in the Indian economy. How do methodological revisions, such as the inclusion of new sectors and weight adjustments, enhance the index's role as a barometer of industrial performance? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The periodic revision of economic indicators is essential for accurate policy formulation. In light of the recent updates to the Index of Core Industries (ICI), analyze the need for institutional consolidation of economic statistics under a single nodal agency. What are the potential benefits of bringing all major economic indices under the Ministry of Statistics and Programme Implementation? 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following sectors was recently added to the Index of Core Industries (ICI) in its updated series?

  2. Which ministry is currently responsible for the management of the Index of Core Industries (ICI) and the Wholesale Price Index (WPI)?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-24/index-of-core-industries-ici-update