{"id":79864,"date":"2026-07-22T18:23:54","date_gmt":"2026-07-22T12:53:54","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=79864"},"modified":"2026-07-22T18:25:10","modified_gmt":"2026-07-22T12:55:10","slug":"updated-ici-index","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/22-07-2026\/updated-ici-index","title":{"rendered":"Updation of the ICI Index"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Government has released an <strong>updated series of its Index of Core Industries (ICI).<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Monthly Index of the ICI<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a <strong>production volume index<\/strong> to provide<strong> an advance indication on production performance of industries of \u2018core\u2019 nature <\/strong>before the release of<strong> Index of Industrial Production (IIP)<\/strong> by the Central Statistics Office.\u00a0<\/li>\n\n\n\n<li>ICI measures collective and individual performance of production in <strong>selected eight core industries viz.<\/strong> Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity.\u00a0<\/li>\n\n\n\n<li>The Index is compiled and released by <strong>Office of the Economic Adviser (OEA), Department of Industrial Policy &amp; Promotion (DIPP),<\/strong> Ministry of Commerce &amp; Industry.<\/li>\n\n\n\n<li>The Eight Core Index broadly has a combined weight of<strong> 37.90% in the Index of Industrial Production (IIP) <\/strong>and is published about<strong> 12 days prior to IIP.<\/strong><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#ebecf0\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Index of Industrial Production (IIP)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>IIP measures the <strong>volume of production<\/strong> in the <strong>industrial sector, <\/strong>including mining, manufacturing, and electricity.\n<ul class=\"wp-block-list\">\n<li>It is a volume-based index, not value-based like GDP.<\/li>\n\n\n\n<li>Indicates industrial activity, helping assess the short-term economic momentum.<\/li>\n\n\n\n<li><strong>Published monthly<\/strong> and the base year currently is to<strong> 2022\u201323.<\/strong><\/li>\n\n\n\n<li><strong>Released By: <\/strong>NSO, MoSPI.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Updation of the Index<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Change in Base Year: <\/strong>The new series of the index brings forward the base year to <strong>2022-23.<\/strong> This makes the data more reflective of current reality, and thus makes it a<strong> more useful gauge of industrial activity.<\/strong>\n<ul class=\"wp-block-list\">\n<li>The previous ICI had a base year of<strong> 2011-12, <\/strong>which was significantly outdated.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Change in Number of Sectors: <\/strong>It has <strong>increased the number of sectors<\/strong> covered to nine from the previous eight.\n<ul class=\"wp-block-list\">\n<li>Owing to the intensive use of<strong> iron ore in industrial production, <\/strong>it has been added to the list of core industries.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Other Updations: <\/strong>Other sectoral changes include<strong> calculating steel production on a gross output basis<\/strong> rather than a net output basis so as to bring this in line with the IIP.\n<ul class=\"wp-block-list\">\n<li>In the coal sector, the updated series <strong>will only measure raw coal,<\/strong> and has <strong>excluded middling and washed coal.\u00a0<\/strong><\/li>\n\n\n\n<li>This change was made to <strong>eliminate the double counting <\/strong>that occurred in the previous series, as both middling and washed coal are made using raw coal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Redistribution Weightage of the Sectors in Index: <\/strong>Iron ore sector has been assigned a weight of 4.905% in the index, the coal sector has come down from 10.33% to 5.596%.\n<ul class=\"wp-block-list\">\n<li>The natural gas sector revised from 6.88% to 3.841%, refinery products weightage reduced from 28.04% to 22.572%.<\/li>\n\n\n\n<li>The electricity sector now makes up 30.932% of the entire index, up from the earlier 19.85%.\u00a0<\/li>\n\n\n\n<li>The fertilizers sector saw its weightage increase marginally to 2.731% from 2.63%.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Updated Base Year: <\/strong>Updating the base year to 2022\u201323 makes the index more representative of the current industrial structure, production patterns, and technological changes.<\/li>\n\n\n\n<li><strong>Greater Accuracy and Comparability: <\/strong>Calculating steel production on a gross output basis aligns the ICI methodology with the Index of Industrial Production (IIP), ensuring consistency and improving comparability across industrial indicators.<\/li>\n\n\n\n<li><strong>Elimination of Double Counting:<\/strong> Restricting the coal sector to raw coal and excluding middling and washed coal removes duplication in production estimates.<\/li>\n\n\n\n<li><strong>Enhanced Reliability of Industrial Indicators:<\/strong> The methodological revisions improve the precision, credibility, and statistical robustness of the index, making it a more reliable indicator of industrial growth and economic performance.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/indias-index-of-core-industries-gets-an-updated-series-what-has-changed-explained\/article71248264.ece#:~:text=The%20previous%20ICI%20had%20a,useful%20gauge%20of%20industrial%20activity.\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Union Government has released an updated series of its Index of Core Industries (ICI). <\/li>\n<p><\/p>\n<p><strong> The Monthly Index of the ICI <\/strong><\/p>\n<li class=\"ms-5\"> It is a production volume index to provide an advance indication on production performance of industries of \u2018core\u2019 nature before the release of Index of Industrial Production (IIP) by the Central Statistics Office.\u00a0 <\/li>\n<li class=\"ms-5\"> ICI measures collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity.\u00a0 <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/22-07-2026\/updated-ici-index \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-79864","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/79864","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=79864"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/79864\/revisions"}],"predecessor-version":[{"id":79867,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/79864\/revisions\/79867"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=79864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=79864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=79864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}