Core upgrade: On the Index of Core Industries
India's Index of Core Industries (ICI) has been updated with a new base year, revised methodologies, and the inclusion of the iron ore sector to better reflect the current economy. While the index shows a 5% growth in June 2026, analysts note that this figure is partially inflated by statistical base effects from previous contractions.
Why it matters
Accurate economic metrics are essential for policymakers to gauge industrial health and make informed decisions regarding fiscal and monetary policy.
The Index of Core Industries (ICI) has finally joined the country’s other economic metrics in becoming up-to-date and representative of the economy. The other metrics such as the national accounts, Consumer Price Index (CPI), Wholesale Price Index (WPI), and the Index of Industrial Production (IIP) were updated earlier this year, although even those were after considerable delays. The ICI has now joined their ranks with the June data being based on a new series with an updated base year, an additional sector being covered, and revised weights and methodologies. This is a welcome upgrade. The performance of these core industries is a vital barometer of the state of the economy. In the new series, the previous eight sectors have become nine, with the vital inclusion of the iron ore sector.
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