UPSC Notes

Index of Core Industries (ICI)

PYQs

11

Articles

4

Momentum

32

Phase IFoundation

Background

Overview

Understanding ICI is crucial for analyzing India's industrial performance, identifying bottlenecks, and evaluating the effectiveness of economic policies. It's a direct and frequently cited measure of economic health and infrastructure development.

The Index of Core Industries (ICI) is a monthly production index that measures the collective and individual performance of nine key infrastructure sectors of the Indian economy. It serves as a lead indicator of industrial activity and overall economic health, providing insights into the manufacturing and infrastructure sectors.

Phase IIStatic core

Facts & tables

Key facts

Measures

Production performance of nine key infrastructure sectors (previously eight).

Weight in IIP

Accounts for about 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Publishing Body

Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry.

Recent Update

Base year updated to 2018-19 (from 2011-12), Iron Ore added as a new sector, and weights revised (e.g., Electricity >30%, Coal ~5.6%, Natural Gas ~3.8%).

Components

Comprises 8 sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.

Publishing Authority

Published monthly by the Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry.

Purpose

Used to gauge the performance and growth momentum of the manufacturing and infrastructure sectors.

Composition of ICI

Comprises 8 sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity.

Reference table

Performance of Key Core Sectors (September 2026)

SectorGrowth Rate (Sept 2026)Sustainability Note
Coal10.7%Temporary blip, low base, power plant pressure
Electricity11.4%Heat wave driven, expected to wane
Crude Oil & Natural GasContracted since 2024Long-term contraction
Refinery Products10.3%Processing expensive imported oil
SteelAcceleratedGovernment infrastructure spending driven
CementSustainably growingGovernment infrastructure spending driven

Reference table

Static syllabus anchors

TypeReference
Conceptual areaIndian Economy
Conceptual areaMacroeconomic Trends & Inflation

Reference table

Institutions & roles

BodyRole
Ministry of Commerce & IndustryPublishes
Ministry of Statistics and Programme Implementation (MoSPI)Suggested publisher
Department for Promotion of Industry and Internal Trade (DPIIT)Publishes
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Multi-statement analysis

Prelims angle: Conceptual understanding

Quick revision

  • Measures production of 9 core infrastructure sectors.
  • Published by Office of Economic Adviser, MoCI.
  • Base year updated to 2018-19; Iron Ore added as new sector.
  • Significant weight (40.27%) in Index of Industrial Production (IIP).
  • Key indicator for industrial growth and economic health.

High-confidence PYQs

Topic timeline

Indian EconomyMacroeconomic Trends & Inflation
Prelims 2014· Factual recall, Policy measures

​Alarm bells: on the Index of Eight Core Industries data

23 May 2026 · The Index of Eight Core Industries (ICI) measures the combined performance of eight crucial infrastructure sectors: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. It accounts for 40.27% of the weight of items included in the Index of Industrial Production (IIP) and serves as a lead indicator for industrial activity.

Read article

​Core upgrade: On the Index of Core Industries

24 Jul 2026 · The Index of Core Industries (ICI) tracks the output of nine key infrastructure sectors, serving as a barometer for industrial activity and a significant component of the IIP. Its recent update to a 2018-19 base year, inclusion of iron ore, and revised sectoral weights aim to make it more representative of the current economic structure.

Read article

Core concerns: On the Indian economy, the road ahead

24 Aug 2026 · The ICI tracks 8 core sectors, indicating industrial growth and contributing significantly to IIP. Recent data shows moderating growth, partly due to base effects and sector-specific issues like contractions in crude oil and natural gas.

Read article

Canary in the coal mine: On the performance of India’s core industrial sectors

23 Oct 2026 · The ICI, comprising 8 key sectors, is a vital economic indicator; its performance reveals industrial health, but assessing the sustainability of growth drivers (e.g., temporary factors vs. structural changes, government spending) is crucial for policy formulation.

Read article

Related topics

Current topic

Index of Core Industries (ICI)

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National Income Accounting and Measurement in India

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Inflation and its Measurement in India

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Industrial Production Measurement

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Index of Industrial Production (IIP)

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Gross Domestic Product (GDP)

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Practice writing on this topic

UPSC has asked 11 linked questions on Index of Core Industries (ICI) in Mains. Write an answer to one — and get it evaluated.

UPSC Prelims PYQs on Index of Core Industries (ICI)

Practice official previous year questions asked by UPSC related to this concept.

In the Index of Eight Core Industries, which one of the following is given the highest weight?

2015·Economy
Solve

The main objective of the 12th Five-Year Plan is

2014·Economy
Solve

Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

2015·Economy
Solve

Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI doe...

2020·Economy
Solve

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. The share of agriculture in GDP increased enormo...

2017·Economy
Solve

Consider the following statements: 1. CoaI sector was nationalized by the Government of India under Indira Gandhi. 2. Now, coal blocks are allocated on a lot...

2019·Economy
Solve

Increase in absolute and per capita real GNP do not connote a higher level of economic development, if -

2018·Economy
Solve

The term 'West Texas Intermediate', sometimes found in news, refers to a grade of

2020·Economy
Solve

A decrease in tax to GDP ratio of a country indicates which of the following? 1. Slowing economic growth rates 2. Less equitable distribution of national in...

2015·Economy
Solve

With reference to the India economy, consider the following statements: 1. The rate of growth of real Gross Domestic Product has steadily increased in the l...

2015·Economy
Solve

With reference to Indian economy, demand pull-inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. Inf...

2021·Economy
Solve

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