Index of Core Industries (ICI)

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Key takeaways

India's core industrial output hit a historic growth peak of 7.9% in September 2026.
Following the Praveen Mahto Committee recommendations, the base year was updated to 2022-23, expanding the core basket to 9 core industries with the addition of Iron Ore.
The 9 core industries make up 32.88% of the total weight in the Index of Industrial Production (IIP) under the new series.
In the new weighting hierarchy, Electricity commands the highest weight at 30.93%, while Fertilizers holds the lowest at 2.73%.
The monthly index is published by the Office of Economic Adviser (OEA) under the Ministry of Commerce and Industry.

India's core industrial growth surged to 7.9% in September 2026. This marks the fastest expansion rate recorded since the official rollout of the new base year data series in April 2024.

The Index of Core Industries (ICI) is a monthly index that tracks the production output of India's foundational infrastructure sectors.
It acts as a primary lead indicator for the broader Index of Industrial Production (IIP).

The government originally tracked six core infrastructure industries before expanding the list to eight under the 2011-12 series. These eight sectors were Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
To reflect structural economic changes, the base year was recently revised from 2011-12 to 2022-23 based on recommendations from the Praveen Mahto Committee.
This revision officially expanded the basket from eight to 9 core industries by adding Iron Ore as a distinct core sector.

The main objective is to provide an early diagnostic assessment of critical infrastructure sectors.
This early data helps detect supply bottlenecks and guides monetary and fiscal policy decisions before comprehensive manufacturing data comes out.

The index is compiled and released every month by the Office of Economic Adviser (OEA) under the Department for Promotion of Industry and Internal Trade (DPIIT) in the Ministry of Commerce and Industry.
These core industries carry a 32.88% weight in the broader Index of Industrial Production (IIP) under the 2022-23 base series, down from 40.27% under the old 2011-12 series.
Under the 2022-23 series weightings, Electricity holds the highest weight at 30.93%, followed by Refinery Products (22.57%), Steel (17.58%), Crude Oil (7.43%), Coal (5.60%), Iron Ore (4.91%), Cement (4.41%), Natural Gas (3.84%), and Fertilizers (2.73%).
The index uses improved methods such as tracking gross steel production to align with IIP standards. It also measures only raw coal to avoid double-counting washed coal and coal middlings.
Since core sectors supply basic inputs to manufacturing and construction, the ICI acts as a reliable advance indicator for forecasting overall quarterly Gross Value Added (GVA) growth.

The historic 7.9% growth rate was driven by key mineral and fuel sectors, including a 13-month high turnaround in Coal (10.7%), a sharp rise in Refinery Products (10.3%), and strong growth in Iron Ore (18.4%).
Utilities and construction sectors stayed strong, with Electricity growing at 11.4%, Cement expanding by 9.8%, and Steel picking up to 4.9%.
In contrast, three sectors experienced contraction: Fertilizers, Natural Gas, and domestic Crude Oil.