Key Details
The revised Index of Core Industries (ICI) modernises one of India's principal high-frequency economic indicators by aligning it with the revised GDP, IIP and WPI series based on the common 2022–23 base year. Alongside statistical improvements, the revision updates the composition and weighting of India's core industries to better reflect the country's evolving industrial structure.
Feature | Key Update |
|---|---|
Base year | Revised from 2011–12 to 2022–23. |
Industry basket | Expanded from 8 to 9 industries through the inclusion of Iron Ore. |
Revised weights | Based on the revised IIP (2022–23). Electricity (30.93%), Refinery Products (22.57%) and Steel (17.58%) now carry the highest weights. |
Methodology | Gross Steel Production replaces Net Production; only Raw Coal retained to eliminate double counting; Ammonium Sulphate retained in the fertiliser basket. |
Overall contribution | The nine core industries account for 32.88% of the revised Index of Industrial Production (IIP). |
Purpose | Improve the representativeness, comparability and reliability of the ICI as an early indicator of industrial activity. |
A Modern Framework for Measuring Industrial Performance
The Index of Core Industries (ICI) is one of India's earliest monthly indicators of industrial activity because it measures production across sectors that supply essential inputs to manufacturing, infrastructure, transport and energy.
Recognising that India's industrial economy has changed substantially since 2011–12, the Office of the Economic Adviser has adopted 2022–23 as the new base year. The revision aligns the ICI with the updated Gross Domestic Product (GDP), Wholesale Price Index (WPI) and Index of Industrial Production (IIP) series, improving consistency across India's principal macroeconomic indicators while strengthening the measurement of industrial and infrastructure-led growth.
Coverage, Weights and Methodology Have Been Updated
The revised Index introduces four significant changes.
The core industry basket has expanded from eight to nine industries through the inclusion of Iron Ore, recognising its growing importance in steel production and infrastructure development. Although Aluminium was examined by the Committee, it was not included because consistent monthly production data were unavailable.
The weights assigned to each industry have been recalibrated using the revised IIP (2022–23) series to reflect changes in India's industrial structure. Electricity now accounts for the largest share of the Index (30.93%), followed by Refinery Products (22.57%), Steel (17.58%), Crude Oil (7.43%) and Iron Ore (4.91%).
The methodology has also been refined to improve statistical consistency. Gross Steel Production replaces Net Production to align with the revised IIP methodology, while Raw Coal is retained and Coal Middling and Washed Coal are excluded to eliminate double counting. Ammonium Sulphate continues to be included in the fertiliser basket following technical review.
Together, these revisions are intended to make the ICI a more representative measure of India's current industrial economy.
What the Revised Series Reveals About India's Industrial Economy
Beyond updating the statistical framework, the Committee's assessment highlights how India's core industries have evolved over the past decade.
Industry | Key Development | Policy Significance |
|---|---|---|
Coal | Production reached a record high in 2024–25. | Coal continues to underpin India's energy security despite the clean energy transition. |
Crude Oil & Natural Gas | Domestic production has declined because of mature fields and operational constraints. | Reinforces the need for greater exploration, production and energy diversification. |
Refinery Products | India has strengthened its position as a major global refining hub. | Supports both domestic energy security and petroleum exports. |
Steel | India is now the world's second-largest steel producer. | Reflects expanding industrial capacity and infrastructure demand. |
Cement | Production continues to expand. | Indicates sustained growth in infrastructure and construction activity. |
Electricity | Renewable sources now contribute nearly 30%of electricity generation. | Demonstrates the changing composition of India's energy mix. |
Iron Ore | Strong production growth supported its inclusion as the ninth core industry. | Highlights its increasing importance within the steel and infrastructure value chain. |
Fertilisers | Domestic production remains centred on urea, supported by capacity expansion policies. | Reflects continued efforts to strengthen agricultural input security and reduce import dependence. |
Together, these trends illustrate the structural changes that the revised Index is intended to capture more accurately.
Strengthening a Key Indicator for Economic Monitoring
The revised Index provides a more representative measure of India's industrial economy by combining updated sectoral coverage, revised weights and improved statistical methodology.
Because the core industries account for 32.88% of the revised Index of Industrial Production, movements in the ICI will continue to provide one of the earliest signals of changes in industrial output, infrastructure activity and overall economic momentum. The revised series is expected to strengthen evidence-based policymaking, business planning and macroeconomic analysis.
What Is the Index of Core Industries (ICI)?
The Index of Core Industries (ICI) - formerly known as the Index of Eight Core Industries - is a monthly production volume index measuring output across India's core infrastructure industries. Following the inclusion of Iron Ore in the revised 2022–23 series, the index now covers nine core industries. These sectors supply essential inputs to manufacturing, construction, transport and energy, making the ICI one of the country's earliest indicators of industrial performance. Because the core industries account for a significant share of the Index of Industrial Production (IIP), movements in the ICI provide an advance indication of broader industrial growth, infrastructure activity and overall economic momentum.
Policy Relevance
Modernises India's industrial statistics by aligning the Index of Core Industries with the revised GDP, IIP and WPI series based on a common 2022–23 base year.
Improves the representation of India's industrial economy through an expanded core industry basket, revised sectoral weights and updated production methodologies.
Captures structural changes across key sectors, including the growing importance of iron ore, renewable electricity, steel and infrastructure-linked industries.
Strengthens the reliability of high-frequency industrial indicators, improving evidence for industrial policy, infrastructure planning and macroeconomic monitoring.
Provides businesses, investors and policymakers with a more accurate benchmark for assessing industrial performance and economic momentum.
Follow the Full Release Here: Report of the Committee on Base Year Revision of Index of Core Industries (ICI) from 2011-12 to 2022-23