UPSC Notes

Index of Core Industries (ICI)

PYQs

9

Articles

2

Momentum

25

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.

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

​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.

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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

Related topics

Practice writing on this topic

UPSC has asked 9 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.

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