UPSC Prelims Practice Questions — PROVISIONAL INDEX OF CORE INDUSTRIES FOR THE MONTH OF SEPTEMBER 2026, AND FINAL INDEX FOR THE MONTH OF AUGUST 2026 WITH BASE YEAR 2022-23

Q1. With reference to the Index of Core Industries (ICI) released in India, consider the following statements: Which of the statements given above is/are correct?

  1. The sector weights in the ICI are derived from the weights of those sectors in the Index of Industrial Production of the same base year, rescaled to add up to 100.
  2. Because the ICI for a month is released before the Index of Industrial Production and its sectors form part of that index, it serves as an early indicator of the direction of industrial output.
  3. The weight of each sector in the ICI is fixed according to that sector's share in total industrial employment in the base year.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 and 3 only
  • D. 1 and 2 only

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. When the Index of Core Industries moved from base 2011-12 to base 2022-23, the old and new series were joined using a linking factor rather than by placing old index values directly alongside new ones.
  2. Index values from series with different base years are expressed relative to different reference levels, each base being set at 100, so they must be rescaled to a common level before they can form a continuous series.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q3. Consider the following year-on-year growth rates of output in the Index of Core Industries: Electricity grew 1.0% in April–September 2025 and 10.2% in April–September 2026. Steel grew 12.2% in April–September 2025 and 4.3% in April–September 2026. Which of the following inferences can be validly drawn from the above data?

  1. Part of Electricity's high growth in April–September 2026 reflects the weak output of the same period a year earlier.
  2. Steel output in April–September 2026 was lower in absolute terms than in April–September 2025.
  3. Taking the two years together, Steel output grew at a faster average annual rate than Electricity output.
  4. The surge in Electricity growth shows that power demand from factories rose faster than power demand from households.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 4 only
  • D. 1, 3 and 4 only

Q4. With reference to year-on-year growth rates of a monthly output index, consider the following statements: Which of the statements given above is/are correct?

  1. A month's year-on-year growth rate can be positive even if output in that month is unchanged from the immediately preceding month.
  2. When output in the same period of the previous year was unusually high, the current year-on-year growth rate tends to overstate the underlying trend.
  • A. 1 only
  • B. 2 only
  • C. Both 1 and 2
  • D. Neither 1 nor 2

Q5. In September 2026, India's Index of Core Industries showed Refinery Products output rising 10.3% year-on-year, while Crude Oil output fell 1.4% and Natural Gas output fell 4.6%. Crude Oil and Natural Gas output had contracted year-on-year in every month from September 2025 to September 2026. Which of the following inferences can be validly drawn from the above?

  1. The additional crude processed by refineries was met largely from crude oil not produced domestically during the period.
  2. The fall in domestic crude oil output resulted from weakening demand for petroleum products in the economy.
  3. Rising refinery throughput will by itself reverse the decline in domestic crude oil production through backward linkages.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 only
  • D. 1, 2 and 3

Q6. With reference to the provisional and final estimates of the Index of Core Industries, consider the following statements: Which of the statements given above is/are correct?

  1. Once a month's provisional index is revised to final, the cumulative growth for the financial year shown in later releases continues to use the original provisional figure for that month.
  2. The provisional index for a month is based on incomplete data and is replaced by a final figure in the following month's release.
  3. An upward revision of a month's index level, with the previous year's level for that month unchanged, raises that month's year-on-year growth rate.
  • A. 2 and 3 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. Suppose imported LNG supplies to India are disrupted and natural gas allocations to fertilizer plants are cut. With reference to India's urea sector, consider the following likely consequences: Which of the statements given above is/are correct?

  1. Domestic urea output falls as gas-based plants operate below their gas requirement.
  2. Imports of urea tend to rise to bridge the gap between demand and domestic production.
  3. The price paid by farmers for urea rises in step with the higher cost of imported gas, leaving the government's subsidy outgo unaffected.
  • A. 1 and 3 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. Consider the following assertion: Growth rates from the 2022-23 series of the Index of Core Industries should not be mechanically compared with growth rates from the earlier 2011-12 series. Which of the following statements support the above assertion?

  1. The new series includes Iron Ore, a sector that was not part of the basket in the earlier series.
  2. The index continues to be released around the 20th of the month following the reference month.
  3. The sector weights in the new series are drawn from the 2022-23 structure of industrial output, and the Steel index is now compiled from gross rather than net production.
  • A. 1 and 3 only
  • B. 2 and 3 only
  • C. 1 only
  • D. 1, 2 and 3