With reference to the Index of Core Industries (ICI) in India, consider the following statements -
- The ICI is a monthly indicator and serves as a leading indicator for the Index of Industrial Production (IIP).
- Iron Ore has been included in the ICI for the first time following the recommendations of the Praveen Mahto Committee.
- In the revised series with the 2022–23 base year, Refinery Products carries the highest weight among all core industries.
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Explanation - The ICI is a monthly indicator measuring the production performance of India's key infrastructure and industrial sectors. It serves as an early indicator of industrial activity and significantly influences the Index of Industrial Production (IIP). Core Industries under the revised ICI (2022–23 Base Year) — The index now covers 9 industries - Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity, and Iron Ore (newly added). These sectors together account for 32.88% of the weight in the IIP, making ICI an important leading indicator of industrial growth. Timeline of ICI evolution — Initial series (1980–81), first revision (1993–94), Fertilisers and Natural Gas added (2004–05), and previous base year (2011–12). Major Changes in the Revised ICI - Inclusion of iron ore — Iron ore has been added following the recommendations of the Praveen Mahto Committee (2025). It contributes 4.9% to the revised index. Production surged 43.9% in June, significantly boosting overall core sector growth. Updated sectoral weights — Major changes in weights reflect the current structure of the economy - Electricity now carries the highest weight (30.93%), replacing refinery products. Weights of coal, crude oil and refinery products have declined. Iron ore has been assigned a 4.9% weight. Methodological improvements — Steel index is now compiled using gross production data. Coal index includes only raw coal, excluding washed coal and coal middlings to avoid double counting. Weights have been aligned with the revised IIP (2022–23 base year).
Explanation - The ICI is a monthly indicator measuring the production performance of India's key infrastructure and industrial sectors. It serves as an early indicator of industrial activity and significantly influences the Index of Industrial Production (IIP). Core Industries under the revised ICI (2022–23 Base Year) — The index now covers 9 industries - Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity, and Iron Ore (newly added). These sectors together account for 32.88% of the weight in the IIP, making ICI an important leading indicator of industrial growth. Timeline of ICI evolution — Initial series (1980–81), first revision (1993–94), Fertilisers and Natural Gas added (2004–05), and previous base year (2011–12). Major Changes in the Revised ICI - Inclusion of iron ore — Iron ore has been added following the recommendations of the Praveen Mahto Committee (2025). It contributes 4.9% to the revised index. Production surged 43.9% in June, significantly boosting overall core sector growth. Updated sectoral weights — Major changes in weights reflect the current structure of the economy - Electricity now carries the highest weight (30.93%), replacing refinery products. Weights of coal, crude oil and refinery products have declined. Iron ore has been assigned a 4.9% weight. Methodological improvements — Steel index is now compiled using gross production data. Coal index includes only raw coal, excluding washed coal and coal middlings to avoid double counting. Weights have been aligned with the revised IIP (2022–23 base year).