The combined Index of Eight Core Industries (ICI) increased by 3.8 per cent (provisional) in December 2023. However, this is the lowest in 14 months. 

The production of coal, natural gas, steel, fertilizers, refinery products, cement and electricity recorded positive growth in December 2023.

Index of Eight Core Industries (ICI)

• The monthly Index of Eight Core Industries (ICI) is a production volume index. 

• It is an important lead indicator for overall industrial performance and general economic activities in the economy. 

• The ICI measures combined and individual performance of production of eight core industries.

They are:

i) Cement

ii) Coal

iii) Crude oil

iv) Electricity

v) Fertilizers

vi) Natural gas

vii) Refinery products

viii) Steel. 

• The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). 

• The Index of Industrial Production (IIP), one of the core economic indicators, is a short-term indicator for measuring growth of industrial production in the country. 

• Present series of IIP with base year 2011-12 is released based on the production data sourced from various ministries/departments, 

• ICI is released 12 days prior to the release of IIP.

• ICI is compiled and released by Office of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPII), and ministry of commerce & industry.

• The comparative weights of these eight industries are largely in alignment with the respective weight of these industries in the IIP.

• The choice of the base year of ICI is according to the choice of base year for the IIP. The base year in the current series of ICI is 2011-12.

Comparative weights in eight core industries based on IIP:

i) Refinery products - 11.29

ii) Electricity - 7.99

iii) Steel - 7.21

iv) Coal - 4.16

v) Crude oil - 3.62

vi) Natural Gas - 2.77

vii) Cement - 2.16

viii) Fertilizers - 1.06.

• The ICI series was initially compiled with base 1980-81 and subsequent revisions were done with base 1993-94 and 2004-05. Prior to the 2004-05 series six core industries namely coal, cement, finished steel, electricity, crude petroleum and refinery products constituted the index basket. Two more industries — fertilizer and natural gas — were added to the index basket in 2004-05 series. The ICI series with base 2011-12 continue to have eight core industries.

Office of the Economic Adviser

• The Office of the Economic Adviser (OEA) is an attached office of the Department for Promotion of Industry & Internal Trade (DPIIT).

• Established in 1937, it is one of the oldest offices in the government of India.

• It continues to be the sole custodian of the Wholesale Price Index since pre-Independence days.

• The mandate of the Office includes compilation and release of Wholesale Price Index (WPI) and Experimental Business Service Price Index (BSPI). 

• It also compiles the Index of Eight Core Industries and contributes towards compilation of Index of Industrial Production.

• As an attached Office, it renders advice to the DPIIT on formulation of policies for country’s industrial development. It supports the Department with analysis of trade, fiscal, investment, competition and labour related issues pertaining to policies and promotion of industries. 

• It supports the Department by coordinating intra and inter-departmental efforts.

Manorama Yearbook app is now available on Google Play Store and iOS App Store