Updated Index of Core Industries: New 2022-23 Base Year and Nine Sectors

Economy · Wednesday, 22 July 2026

The Union Government released an updated Index of Core Industries series with base year 2022-23 replacing 2011-12, expanding coverage from eight to nine sectors by adding iron ore. Electricity becomes the largest component at 30.932% weight, while refinery products, coal and natural gas see reduced weights.

Quick highlights

New base year 2022-23=100 replaces 2011-12.
Coverage expands from 8 to 9 core industries with the addition of iron ore at 4.905% weight.
Steel now measured by gross production instead of net production, for consistency with the IIP.
Coal index narrowed to raw coal only, excluding coal middlings and washed coal to avoid double-counting.
Electricity becomes the largest sector at 30.932% (up from 19.85%); refinery products fall to 22.572% (from 28.04%).
Compiled monthly by the Office of Economic Adviser, DPIIT, Ministry of Commerce and Industry.

Context

The Union Government released an updated series of the Index of Core Industries (ICI), introducing a revised base year of 2022-23 in place of 2011-12.

Key Facts

The ICI is a monthly production volume index measuring the combined performance of key infrastructure-supportive core sectors, acting as a high-frequency lead indicator for the Index of Industrial Production (IIP), in which these sectors hold significant combined weightage. It is compiled and published monthly by the Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. Key changes: base year updated to 2022-23=100; expansion from 8 to 9 sectors with iron ore added at 4.905% weight for its role as a critical industrial input; steel shifted from net to gross production accounting; coal index narrowed to raw coal only, excluding coal middlings and washed coal; and weights rebalanced pro-rata from the 2022-23 IIP series - electricity 30.932% (from 19.85%), refinery products 22.572% (from 28.04%), coal 5.596% (from 10.33%), natural gas 3.841% (from 6.88%), fertilizers 2.731% (from 2.63%).

Significance

Updating the base year to 2022-23 improves the accuracy of industrial output measurement and economic assessment by reflecting structural shifts and modern consumption patterns. Aligning the ICI with the IIP, GDP/GVA, CPI, WPI and producer price indices supports better economic analysis and policy decisions.

Challenges / Way Forward

Series revisions create comparability breaks with older data, requiring careful back-casting and user communication. The sharp rise in electricity's weight means headline core sector growth will be more sensitive to power generation swings, so analysts must read sectoral detail rather than the headline alone; continued periodic base revisions keep the index aligned with the evolving industrial structure.

Exam Angle

Prelims: nine core industries and their weights, base year 2022-23, iron ore as the newly added sector, publishing agency (Office of Economic Adviser, DPIIT), and the ICI-IIP relationship. Mains GS-3: measurement of industrial performance, statistical reforms and evidence-based policymaking.

Remember this

New ICI base year: 2022-23=100 (earlier 2011-12).
Core industries expanded from 8 to 9 with the addition of iron ore (weight 4.905%).
Electricity is now the largest sector at 30.932%, up from 19.85%.
Refinery products: 22.572% (down from 28.04%).
Coal: 5.596% (from 10.33%); Natural gas: 3.841% (from 6.88%); Fertilizers: 2.731% (from 2.63%).
Steel now uses gross production, aligning with the IIP framework.
Coal index tracks raw coal only, excluding middlings and washed coal.
Published monthly by the Office of Economic Adviser, DPIIT, Ministry of Commerce and Industry.

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