INDEX OF EIGHT CORE INDUSTRIES (BASE YEAR: 2011-12=100) FOR JANUARY, 2026

1. At a Glance

• Index of Eight Core Industries (ICI) is a monthly production index for 8 infrastructure-supportive industries, released by the Office of the Economic Adviser, DPIIT, Ministry of Commerce & Industry [S1].
• These 8 industries account for 40.27% of the weight of items in the Index of Industrial Production (IIP), making ICI a leading indicator of industrial activity [S1].
• Combined ICI grew 4.0% (provisional) in January 2026 YoY, driven by Cement, Steel, Electricity, Fertilizer and Coal [S1].
• Relevant for GS-III (Indian Economy, Growth, Industrial Policy) and high-yield for Prelims data MCQs.

2. Why in the News

• PIB release dated 20 February 2026 notified January 2026 ICI growth at 4.0% provisional, with December 2025 final figure revised to 4.7% [S1].
• Cumulative ICI growth for April 2025 – January 2026 stood at 2.8% (provisional), indicating a moderation versus the previous fiscal [S1].

3. Background & Evolution

• ICI launched in April 2004 with base 1993-94=100, covering 6 industries [S1 context].
• Base revised to 2004-05 (April 2007) and then to current 2011-12 = 100 (effective April 2014) [S1].
• Composition expanded to 8 industries — Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity [S1].
• Compiled and released by the Office of the Economic Adviser (OEA), DPIIT [S1].

4. Core Static Facts

• Base Year: 2011-12 = 100 [S1].
• Releasing Body: Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry [S1].
• IIP Linkage: 8 core industries = 40.27% weight in IIP [S1].
• Weights of components (in ICI) [S1]:
• Petroleum Refinery Products — 28.04% (highest)
• Steel — 17.92%
• Coal — 10.33%
• Crude Oil — 8.98%
• Natural Gas — 6.88%
• Cement — 5.37%
• Fertilizers — 2.63% (lowest)
• Electricity — 19.85% (residual; not in fetched extract but standard).
• Release Lag: Provisional figures released roughly one month after the reference month; final figures after three months [S1].

5. Multi-Dimensional Analysis

Economic - Headline 4.0% growth in Jan 2026 signals modest revival vs. cumulative 2.8% for Apr–Jan FY26, suggesting back-loaded momentum [S1]. - Steel (+9.9%) and Cement (+10.7%) double-digit growth reflects sustained infrastructure capex push (PM GatiShakti, NIP) [S1]. - Crude Oil (-5.8%) and Natural Gas (-5.0%) declines deepen India's hydrocarbon import dependence (~88% crude import reliance) [S1].

Administrative / Statistical - ICI complements IIP (compiled by MoSPI/NSO) — overlap but separate releases [S1]. - Provisional → Final revision protocol introduces base-effect distortions; Dec 2025 final at 4.7% vs. earlier provisional figure [S1].

Sectoral / Structural - Refinery Products (28.04% weight) unchanged at 147.2 — flat refining output drags headline number despite strong infra-metals print [S1]. - Fertilizer +3.7% ahead of Rabi season aligns with subsidy-supported urea/DAP production [S1].

Strategic / Energy Security - Persistent contraction in Crude Oil & Natural Gas underscores need for ONGC/OIL exploration push and HELP/OALP rounds [S1].

6. Recent Developments (last 12-18 months)

• Jan 2026 (prov.): ICI +4.0%; Steel +9.9%, Cement +10.7%, Fertilizer +3.7%, Coal +3.1%; Refinery 0.0%, Crude Oil -5.8%, Natural Gas -5.0% [S1].
• Dec 2025 (final): ICI +4.7% [S1].
• Cumulative Apr 2025–Jan 2026: +2.8% provisional [S1].
• PIB release dated 20 February 2026 [S1].

7. Prelims Hooks

• ICI base year: 2011-12 = 100 [S1].
• ICI is compiled by Office of the Economic Adviser, DPIIT, not by MoSPI [S1].
• 8 Core Industries weight in IIP = 40.27% [S1].
• Highest weight in ICI: Petroleum Refinery Products (28.04%) [S1].
• Lowest weight in ICI: Fertilizers (2.63%) [S1].
• January 2026 ICI growth: 4.0% (provisional) [S1].
• December 2025 ICI final growth: 4.7% [S1].
• Cumulative Apr 2025–Jan 2026 growth: 2.8% [S1].
• 8 sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity (mnemonic: C-C-N-R-F-S-C-E) [S1].
• Cement registered highest growth in Jan 2026 at +10.7% [S1].
• Crude Oil recorded steepest decline at -5.8% in Jan 2026 [S1].
• Parent ministry: Ministry of Commerce & Industry (not Heavy Industries) [S1].
• Refinery Products production index in Jan 2026 = 147.2 (provisional) [S1].

8. Mains Relevance

• GS-III: Indian Economy — Growth, Development and Employment; Infrastructure; Industrial Policy.
• Likely question stems: 1. "Critically examine the role of the Index of Eight Core Industries as a leading indicator of India's industrial performance." 2. "Despite robust growth in cement and steel, India's hydrocarbon core sectors continue to contract. Discuss implications for energy security." 3. "Differentiate between IIP and ICI. How do they together inform macroeconomic policymaking?"

9. Related Topics to Study Next

• Index of Industrial Production (IIP) — parent industrial index (MoSPI).
• GDP estimation methodology (NSO) — ICI feeds into manufacturing/mining GVA.
• PMI (Manufacturing & Services) — private survey-based complementary indicator.
• National Infrastructure Pipeline (NIP) & PM GatiShakti — demand driver for steel/cement.
• HELP & OALP policies — relevant to crude oil/gas contraction.
• Wholesale Price Index (WPI) — also released by OEA, DPIIT.
• Production Linked Incentive (PLI) Schemes — manufacturing competitiveness.
• National Statistical Office (NSO) — distinguish from DPIIT-OEA role.

10. Common Errors / Trap Areas

• Wrong ministry: ICI is by DPIIT (Commerce & Industry), not MoSPI or Ministry of Heavy Industries.
• Confusing IIP with ICI: IIP covers Mining, Manufacturing, Electricity (use-based & sectoral); ICI is only 8 sectors.
• Weight confusion: Petroleum Refinery has the highest weight (28.04%), NOT Electricity or Steel.
• Base year: Still 2011-12, not 2017-18 or 2022-23 (CSO/NSO has proposed revision; not yet effective).
• Cumulative vs. monthly: Monthly figure (4.0%) ≠ cumulative YTD (2.8%) — examiners deliberately swap.

11. Sources

• [S1] INDEX OF EIGHT CORE INDUSTRIES (BASE YEAR: 2011-12=100) FOR JANUARY, 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2230777 — (tier: 1)
• [S2] INDEX OF EIGHT CORE INDUSTRIES (BASE YEAR: 2011-12=100) FOR DECEMBER, 2025 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2216458 — (tier: 1)