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21 July 2026

Government releases updated Index of Core Industries series with 2022-23 base year

Updating the Index of Core Industries base year and expanding core sectors to include iron ore is a major revision in India's macroeconomic and industrial growth tracking metrics.

2 min read 2 questions 2 prelims

Notes

  • The Ministry of Commerce and Industry released a new series of the Index of Core Industries (ICI), updating the base year from 2011-12 to 2022-23.
  • Iron ore has been added as a new item, expanding the total number of core sectors covered under the ICI from eight to nine.
  • Sectoral weights and estimation methodologies have been updated in the revised index series.
  • India's core industrial sectors grew at 5% in June 2026, marking a five-month high since January 2026 when growth reached 5.2%.
  • Iron ore recorded the fastest growth within the index at 43.9% in June 2026 (compared to 19% in May), largely driven by a statistical base effect following a 16.4% contraction in June of the prior year.
  • Growth rates across other expanding sectors in June 2026 were Electricity (9.8%), Cement (9.8%), Steel (4.6%), and Coal (1.4%).
  • Coal snapped a three-month streak of contraction to grow by 1.4% in June 2026.
  • All hydrocarbon energy and related product sectors contracted in June 2026: Crude oil (-4.2%), Natural gas (-7.4%), Refinery products (-4.7%), and Fertilisers (-3.3%).
  • Contraction in crude oil, gas, refinery products, and fertilisers was attributed to higher imports due to cooling global crude prices, reduced refinery product exports, and increased fertiliser imports.

Questions

  1. Discuss the significance of periodically revising the base year and sectoral composition of key macroeconomic indicators such as the Index of Core Industries (ICI) for macroeconomic policymaking in India. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Examine the role of core industries as leading indicators of broader industrial performance in India. What structural factors influence the growth trajectory of the core sector, and how can policy interventions address regional and sectoral growth disparities? 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which new sector has been added to the updated Index of Core Industries (ICI) series, expanding the total number of core sectors to nine?

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

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