Index
of Core Industries
Prelims:
Indian Economy
Mains:
GS Paper III-Indian Economy
Current relevance:
The Union Government has released an updated series of the Index of Core
Industries (ICI) by revising the base year to 2022–23.
Highlights:
1.
The Index of
Core Industries (ICI) is a key indicator that measures the performance of
India's core industrial sectors and serves as an important gauge of industrial
activity.
2. It is Compiled
by the Office of the Economic Adviser
(OEA), Ministry of Commerce &
Industry.
3. The Index of
Core Industries (ICI) forms part of the Index
of Industrial Production (IIP), with its nine core industries accounting
for 32.88% of the total weight in
the IIP.
4. Both the ICI and
the IIP are released on a monthly basis
to monitor trends in India's industrial growth.
5. Major changes:
i.
The Office of Economic Adviser (OEA), Ministry of
Commerce and Industry, has released the first
provisional Index of Core Industries
(ICI) under the revised series with the base year 2022–23.
ii.
The revised
Index of Core Industries (ICI) has expanded from eight to nine core industries with the inclusion of Iron Ore, based on the recommendations
of the Praveen Mahto Committee (2025),
recognising its critical role in steel production and industrial development.
iii.
The Steel Index
is now compiled using Gross Production
Data instead of Net Production Data,
ensuring consistency with the revised IIP methodology.
iv.
To eliminate double
counting, the coal index now includes only
Raw Coal, while Washed Coal and Coal Middlings have been excluded.
v.
The sectoral weights have been revised and normalised to 100
in line with the revised IIP (Base Year:
2022–23), reflecting the current structure of the economy.
Source: THE HINDU - https://www.thehindu.com/business/Industry/indias-index-of-core-industries-gets-an-updated-series-what-has-changed-explained/article71248264.ece