New Index of Core Industries (Base Year 2022‑23) Launched – Methodology, Growth & UPSC Implications

Overview The Index of Core Industries (ICI) has been re‑based to Base Year 2022‑23. The Ministry of Commerce &amp; Industry through the Office of Economic Adviser (OEA) released the June 2026 provisional figures on 20 July 2026. Key Developments Iron ore is added as a new core item, raising the count of core industries from eight to nine. Steel index now uses gross production data, aligning it with the Index of Industrial Production (IIP) methodology. Only raw coal is retained; coal middling and washed coal are excluded to avoid double counting. Weights for the new series are derived from the corresponding IIP weights and scaled to 100. The Linking Factor between the old (2011‑12) and new (2022‑23) series is calculated as 1.47. Provisional ICI for June 2026 shows a **5.0 %** YoY rise, driven mainly by iron ore (+43.9 %) and electricity (+9.8 %). Important Facts & Figures Growth rates (June 2026, provisional): Iron Ore: +43.9 % Electricity: +9.8 % Cement: +9.8 % Steel: +4.6 % Coal: +1.4 % Natural Gas, Crude Oil, Refinery Products, Fertilizers: negative growth. The cumulative growth for April‑June 2026 is **3.6 %** (provisional), up from **1.0 %** in the same period of the previous year. UPSC Relevance Understanding the ICI is essential for GS‑3 (Economy) as it reflects the health of core manufacturing sectors, which influence employment, export potential, and fiscal revenue. The shift to a newer <span class="key-term" data-definition="Base Year – The reference year against which index values are normalised to 100. Changing the base year updates the weightage of sectors (GS3: Economy)