Index of Core Industries (ICI)

• Index of Core Industries (ICI) is a production volume index which is released on monthly basis.
• The index measures combined and individual performance of production in selected eight core industries.
• The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce & Industry is mandated with releasing the Index.
• The base year of the ICI has been revised to 2011-12 from 2004-05.

What are the Eight Core Industries of the Index?

ln the order of weightage from highest to lowest, the Eight Core Industries are:

1. Petroleum Refinery,
2. Electricity generation,
3. Steel production,
4. Coal,
5. Crude Oil,
6. Natural Gas,
7. Cement production, and
8. Fertilizers.

Significance of the Index of Core Industries (ICI)

• These industries account for more than 40% of the weight of items included in the Index of Industrial Production (IIP).
• It is an important lead indicator for overall industrial performance and general economic activities in the economy.
• Since these eight industries are essential, basic and/or intermediate ingredient in functioning of broader economy, mapping their health provides a fundamental understanding of state of the economy.

Latest News

• 03 september 2022: India’s eight core sectors’ output growth dropped to a six-month low of 4.5% in July from 13.2% in June, with crude oil and natural gas output declining from a year ago and growth in sectors like cement and electricity dropping to around 2%.

Sources

1. The Hindu
2. SME Times