The government is expanding the Index of Core Industries to nine sectors by adding iron ore to better reflect its industrial importance. Starting next week, the data will use a new 2022-23 base year and updated weightages to improve accuracy. This change is part of a wider effort to refine national economic reporting and align core sector metrics with the Index of Industrial Production.
The Ministry of Commerce and Industry is set to refresh the Index of Core Industries (ICI) next week, marking a significant change in how India measures its industrial backbone. For the first time, iron ore will be included as a core sector, joining the existing list of coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity.
Updated Base Year and Weighting
The government is shifting the base year for the index from 2011-12 to 2022-23. This change is designed to better represent the modern structure of the Indian economy. Because of this adjustment, the relative importance or weight of the existing eight sectors will be redistributed to make room for iron ore. These new weights will align with the Index of Industrial Production (IIP), which is crucial because core industries make up roughly 40% of the total IIP. By aligning these two metrics, officials aim to create a more consistent picture of national industrial health.
Refining How Data is Collected
Beyond adding a new sector, the update introduces changes to how data is gathered to improve precision. The Steel Index will now rely on gross production figures rather than net production to capture a more accurate output level. Additionally, the coal index will focus strictly on raw coal production. By excluding coal middlings and washed coal, which are processed products derived from raw coal, the ministry aims to eliminate double-counting that may have inflated past figures. These technical refinements are intended to provide a clearer, more reliable data set for policy makers and market analysts.
Economic Context and Timing
This move comes as the government continues its broader overhaul of national statistics, having already updated benchmarks for GDP, the Consumer Price Index, and the Wholesale Price Index. The timing follows a period of cooling industrial output, with core sector growth hitting a seven-month low of 0.5% in May. For the 2025-26 fiscal year, growth was reported at 2.7%, down from 4.5% the year before. Investors and analysts often track the ICI as a leading indicator of broader economic momentum. With the inclusion of iron ore and the shift to a more recent base year, the upcoming data release will be monitored to see if these adjustments alter the perceived pace of industrial recovery in the current fiscal environment.