Index of Core Industries Revised: 2022-23 Base, Iron Ore Added
Why in the news
The government issued a revamped core industries index with a newer base year and one more sector, aligning it with other macro indicators.
About the ICI
- A monthly volume index of key infrastructure-supporting industries.
- Acts as a lead indicator for the Index of Industrial Production (IIP).
- Compiled by the Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry.
Why revise
- Reflect structural shifts such as renewables, digital infrastructure, GST and the post-pandemic economy.
- Match the 2022-23 base already adopted by GDP, WPI and IIP, so indicators are comparable.
Key changes
| Change | Detail |
|---|---|
| Base year | 2022-23 = 100 replaces 2011-12; new series from June 2026 with a 38-month back series (April 2023 to May 2026) |
| Sectors | Iron Ore added as 9th, weight 4.905%; the original eight stay |
| IIP weight | Nine industries now 32.88% (earlier 40.27%) |
| Steel | Gross production replaces net production, in line with IIP |
| Coal | Raw coal only; coal middlings and washed coal dropped to avoid double-counting |
Weights compared
| Sector | New weight | Old weight (2011-12) |
|---|---|---|
| Electricity | 30.932% (largest) | 19.85% |
| Refinery products | 22.572% | 28.04% |
| Coal | 5.596% | 10.33% |
| Iron ore | 4.905% (new) | none |
| Natural gas | 3.841% | 6.88% |
| Fertilizers | 2.731% | 2.63% |
Steel, cement and crude oil were also rebalanced; their old weights were 17.92%, 5.37% and 8.98%.
Key concepts
- Base year: reference year set to 100.
- IIP: released by MoSPI/NSO; covers mining, manufacturing (largest) and electricity.
- Volume index: tracks physical output, unaffected by prices.
- Pro-rata redistribution: IIP weights scaled so the ICI basket totals 100.
Exam angle
- New base year: 2022-23.
- New sector: Iron Ore (nine core industries).
- Publisher: Office of the Economic Adviser, DPIIT.