India’s Index of Core Industries gets an updated series: What has changed? | Explained
The Indian government has updated its Index of Core Industries (ICI) by shifting the base year to 2022-23 and expanding the sector coverage from eight to nine industries. The inclusion of iron ore and revised weighting methodologies aim to provide a more accurate reflection of current industrial activity.
Why it matters
Updating economic indices is critical for policymakers and investors to accurately gauge industrial performance and economic health.
The story so far : The Union Government has released an updated series of its Index of Core Industries (ICI), which is a key measure of how the main industrial sectors in India’s economy are doing. This update now brings the ICI on a par with other recently updated metrics such as the national accounts (Gross Domestic Product and Gross Value Added), inflation, and the Index of Industrial Production (IIP).
The previous ICI had a base year of 2011-12, which was significantly outdated. So, the first major update of the new series of the index was to bring forward the base year to 2022-23. This makes the data more reflective of current reality, and thus makes it a more useful gauge of industrial activity.
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