- Why in news
- On 21 October 2026 the Commerce Ministry released the provisional Index of Core Industries for September 2026 (base 2022-23). It showed 7.9 per cent year-on-year growth, up from 5.9 per cent in August.
- What it is
- The Index of Core Industries (ICI) tracks output of nine key infrastructure and industrial sectors. It is compiled monthly by the Office of the Economic Adviser, DPIIT, and the core sectors carry a large weight in the Index of Industrial Production (IIP). It gives an early signal of industrial performance.
- Headline growth
- ICI grew 7.9% year-on-year in September 2026 (provisional), against 5.9% in August 2026 (final).
- Sector split
- Iron ore, electricity, coal, refinery products, cement and steel grew. Fertilizers, natural gas and crude oil contracted.
- Cumulative growth
- April-September 2026 growth was 5.1%, against 2.5% a year earlier.
- Base year
- The index uses 2022-23 as its base year.
- Release schedule
- The provisional index comes out on the 20th of the following month, or the next working day if that is a holiday.
- Compiler
- The Office of the Economic Adviser, DPIIT, compiles the ICI.
- Number of industries
- Iron ore is added, raising core industries from eight to nine.
- Steel data
- The Steel Index now uses gross production data instead of net production data.
- Coal
- Only raw coal is kept; coal middlings and washed coal are dropped to avoid double counting.
Don’t confuse with ICI vs IIP: ICI covers only nine core sectors. IIP covers mining, manufacturing and electricity more broadly, and the core sectors form part of it.
Don’t confuse with Gross vs net production: Gross production is total output; net production deducts items such as own consumption or inputs. The steel index now uses gross.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Core sector data is an early guide to industrial output and infrastructure demand before IIP is released.
- Updated base year and basket make the early indicator of industrial output better reflect the present economy.
- Adding iron ore captures a key input for steel and infrastructure.
Problems
- Provisional figures are revised later; August 2026 growth was revised from 4.8% to 5.9%.
- Contraction in fertilizers, natural gas and crude oil shows weak domestic energy output.
- Base revisions break comparability with older series, so back series are needed.
- Core indices are only a partial proxy for overall industrial growth.
Way forward
- Raise domestic output of crude oil and natural gas to cut import dependence.
- Regularly rebase indices in step with IIP and GDP revisions.
- Publish clear back series and methodology notes for users.
Put in your answer
Revision example: August 2026 index was revised from 119.2 to 120.4, showing provisional data can change.
Iron ore inclusion: Iron ore added for its extensive use in industrial production, making nine core industries.
- 2021Mains GS3 · Q12Discuss whether infrastructure investment is essential for rapid, inclusive growth, using India's experience.
- 2017Mains GS3 · Q12Why industrial growth lagged GDP post-reform, and whether recent policy changes can help.
- 2012Prelims Q39Which listed industries are among the eight core industries carrying IIP weight?
- 2015Prelims Q8Which core industry has the highest weight in the Index of Eight Core Industries?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The revised Index of Core Industries, with base year 2022–23, covers nine core industries after iron ore is added.
- 2.The weights of the revised Index of Core Industries are drawn from the Index of Industrial Production 2022–23 weights and rescaled to total 100.
- 3.The Index of Industrial Production, from which the weights are drawn, is released by the Office of Economic Adviser.
Which of the statements given above is/are correct?
True or false?
1 of 5
Statements the way Prelims prints them. Say first, then see the fact.
1.The Index of Core Industries is compiled monthly by the Office of Economic Adviser, DPIIT.
True. OEA in DPIIT compiles the ICI monthly.
2.The revised ICI covers ten core industries after the inclusion of iron ore.
False. Iron ore makes the number nine, up from eight.
3.The revised Steel Index is compiled using net production data to align with the IIP.
False. It uses gross production data, replacing net production data.
4.In the revised ICI, coal middlings and washed coal are excluded because they are derived from raw coal.
True. Only raw coal retained to avoid double counting.
5.The Index of Industrial Production, from which ICI weights are drawn, is released by the Office of Economic Adviser.
False. The IIP is released by MoSPI.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.