February 2026 Index of Eight Core Industries (ICI) Overview
The ICI registered a provisional 2.3% year‑on‑year (YoY) increase in February 2026 compared with February 2025. The rise was anchored by robust outputs in steel (+7.2%) and cement (+9.3%). Conversely, energy‑related segments such as crude oil (‑5.2%), natural gas (‑5.0%) and refinery products (‑1.0%) recorded declines.
Key Developments (February 2026)
- Overall ICI growth: +2.3% (provisional).
- Steel: +7.2% YoY; cumulative April‑Feb 2025‑26 growth +9.7%.
- Cement: +9.3% YoY; cumulative growth +9.2%.
- Coal: +2.3% YoY; cumulative index unchanged at 185.8.
- Electricity: +0.5% YoY; cumulative growth +0.9%.
- Fertilizers: +3.4% YoY; cumulative growth +2.0%.
- Crude Oil & Natural Gas: declines of 5.2% and 5.0% respectively; cumulative indices down 2.5% and 3.5%.
- Petroleum Refinery Products: down 1.0% YoY; cumulative fall of 0.1%.
Important Facts & Figures
The ICI’s sector‑wise weights (derived from the IIP) sum to 100%:
- Coal – 10.33%
- Crude Oil – 8.98%
- Natural Gas – 6.88%
- Refinery Products – 28.04%
- Fertilizers – 2.63%
- Steel – 17.92%
- Cement – 5.37%
- Electricity – 19.85%
Since April 2014, renewable‑source electricity is included, and from March 2019 the HRPO (Hot Rolled Pickled and Oiled) steel product has been added, enhancing the index’s coverage.
Exam Relevance
Understanding the ICI is vital for GS‑3 (Economy) as it reflects:
- Industrial growth trends and sectoral health, informing questions on manufacturing, infrastructure and energy security.
- Policy impact assessment – e.g., how price caps, subsidies or import duties affect core sectors.
- Fiscal implications – sectors like steel and cement are major contributors to tax revenue and employment.
Moreover, the divergence between energy‑intensive (oil & gas) and non‑energy sectors (steel, cement) can be linked to global commodity price volatility, a recurring theme in GS‑3 essay topics.
Way Forward
Policymakers may consider:
- Targeted support for lagging energy sectors (e.g., strategic petroleum reserves, price stabilization mechanisms) to curb the downward trend.
- Continued incentives for high‑growth sectors like steel and cement, such as accelerated depreciation or credit-linked subsidies, to sustain infrastructure momentum.
- Strengthening renewable‑energy integration within the electricity mix to reduce dependence on fossil fuels, aligning with India’s climate commitments.
- Regular monitoring of the ICI, with timely release of final data (the March 2026 index is slated for 20 April 2026), to guide macro‑economic planning.
For UPSC aspirants, tracking the ICI alongside the broader IIP offers a nuanced picture of India’s industrial trajectory, essential for answer‑writing in both prelims and mains.