SDG 9: Industry, Innovation and Infrastructure | SDG 7: Affordable and Clean Energy | SDG 8: Decent Work and Economic Growth
Ministry of Commerce & Industry
The combined Index of Eight Core Industries (ICI) increased by 4.0 per cent (provisional) in January 2026 compared to the same month last year. Growth during the month was primarily driven by double-digit increases in Cement (10.7%) and Steel (9.9%), followed by steady growth in Electricity (3.8%), Fertilizers (3.7%), and Coal (3.1%). However, the energy extraction sectors faced headwinds, with Crude Oil (-5.8%) and Natural Gas (-5.0%) recording declines. Petroleum Refinery Products remained unchanged at a provisional index of 147.2. The cumulative growth rate for the April-January 2025-26 period stands at 2.8 per cent, reflecting a resilient but mixed industrial recovery.
Key Pillars of ICI January 2026 Performance
Infrastructure Drivers: Cement (10.7%) and Steel (9.9%) emerged as the top-performing sectors, signaling strong construction and industrial demand.
Energy Extraction Trends: Crude Oil (-5.8%) and Natural Gas (-5.0%) saw significant year-on-year declines, continuing a downward cumulative trend.
Electricity & Renewables: Power generation increased by 3.8%, supported by the inclusion of renewable energy sources in the index since 2014.
Agriculture Input Stability: Fertilizer production grew by 3.7%, maintaining a positive cumulative growth of 1.9% for the fiscal year.
Refined Output Resilience: Despite no year-on-year growth in January, Refinery Products (the highest weightage sector at 28.04%) maintained a marginal cumulative increase of 0.1%.
What is the “Index of Eight Core Industries” (ICI)? The ICI measures the individual and combined performance of production in eight core sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. These industries are considered “core” because they provide the essential inputs for almost all other industrial activities. Together, they comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). A positive growth in ICI is typically a lead indicator of broader industrial health and capital expenditure in the economy.
Policy Relevance
The January 2026 ICI data represents a transition from “Broad-Based Recovery” to “Sectoral Divergence,” where heavy infrastructure is outpacing energy extraction.
Standardizing Steel Performance: The 9.9% growth in Steel acts as a “Standard Maker” move, reflecting the impact of the Pax Silica and semiconductor stack initiatives on high-end manufacturing demand.
Bypassing Crude Dependencies: The 5.8% decline in Crude Oil underscores the strategic importance of the Offshore Wind “Trustforce” to reduce national reliance on fluctuating fossil fuel extraction.
Operationalizing Renewable Integration: Since 2014, the inclusion of renewable energy in the electricity index ensures that the 3.8% growth accurately reflects India’s progress toward its green energy goals.
Federal Infrastructure Momentum: The 10.7% surge in Cement indicates that the 2022-23 base year revision correctly captures the high-velocity growth in housing and public works.
Implementation Fidelity via Monthly Tracking: The finalization of the December 2025 growth at 4.7% ensures that short-term policy adjustments are based on stable, verified industrial data.
Follow the full report here: INDEX OF EIGHT CORE INDUSTRIES (BASE YEAR: 2011-12=100) FOR JANUARY, 2026