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Index of Core Industries with Base Year 2022-23

Kumari Sonali

Index of Core Industries with Base Year 2022-23:

The Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, released the first provisional Index of Core Industries (ICI) under a new series with the base year 2022-23.

  • The 2022–23 base year series replaces the 2011–12 series and is applied retrospectively from April 2023, with the back series released for historical comparison.
  • The ICI is a vital macroeconomic indicator that measures the combined and individual production performance of India’s foundational industrial sectors on a monthly basis.
  • The provisional ICI for a reference month will normally be released on the 20th of the following month, or on the next working day.
  • Core industries serve as the structural backbone for all other industrial activities. The combined weight of these core industries in the broader Index of Industrial Production (IIP) is now 32.88% (under the new 2022-23 base), updated from the previous 40.27% under the 2011-12 series.
  • The revised ICI has expanded the list of core industries from eight to nine by including Iron Ore, recognizing its extensive use in steel manufacturing and its vital contribution to industrial development.
  • Consequently, the revised ICI now covers Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity, and Iron Ore.
  • The Steel Index will now be compiled using Gross Production Data instead of Net Production Data, ensuring consistency with the revised IIP.
  • To eliminate double counting, only Raw Coal has been retained, while Coal Middling and Washed Coal have been excluded.
  • Further, the sectoral weights have been updated using the IIP (Base Year 2022–23) and normalized to 100.
  • Electricity has the highest weight (30.93%), followed by Refinery Products (22.57%), Steel (17.58%), Crude Oil (7.43%), Coal (5.59%), Iron Ore (4.90%), Cement (4.41%), Natural Gas (3.84%), and Fertilizers (2.73%).
  • To maintain historical comparability, a linking factor has been calculated using the following formula:
    Linking Factor = (Geometric Mean of the monthly ICI of the old series for 2022-23) / (Geometric Mean of the monthly ICI of the new series for 2022-23)
    The Linking Factor for the Overall Index of Core Industries is established at 1.47.
  • The ICI recorded 5.0% year-on-year (Y-o-Y) growth in June 2026 (Provisional Estimates), improving from 3.2% recorded in May 2026 (Final Estimates).
    Iron Ore (43.9%), Electricity (9.8%), Cement (9.8%), Steel (4.6%), and Coal (1.4%) observed positive year-on-year (Y-o-Y) growth, while Natural Gas, Crude Oil, Refinery Products, and Fertilizers recorded negative Y-o-Y growth.
  • Iron Ore and Electricity emerged as the major drivers of overall ICI growth in recent months.
  • The cumulative ICI growth during April–June 2026 stood at 3.6% (Provisional Estimates), compared to 1.0% in the corresponding period of the previous year.