Updated Index of Core Industries improves economic data representation
The Index of Core Industries (ICI) has been updated, aligning it with other economic metrics like CPI and WPI. This welcome upgrade includes a new base year, an additional sector (iron ore), and revised weights and methodologies. The ICI now covers nine sectors, with electricity's weight significantly increasing to over 30%, reflecting renewables' growth. The June 2026 data showed a 5% growth, but this was partly due to a statistical base effect. The update highlights persistent contractions in crude oil and natural gas sectors, indicating a serious shortcoming if resources exist but are not economically extracted. A broader statistical reorganisation, moving ICI and WPI to the Ministry of Statistics, is suggested.
Key Points
- The Index of Core Industries (ICI) has been updated with a new base year, an additional sector, and revised weights.
- The updated ICI now covers nine sectors, with electricity's weight increasing significantly to over 30%.
- June 2026 data showed a 5% growth, partly influenced by a statistical base effect.
- The update reveals persistent contractions in crude oil and natural gas sectors, indicating challenges in economic extraction.
- A broader statistical reorganisation, moving ICI and WPI to the Ministry of Statistics, is recommended.
Exam Facts
- The ICI now includes nine sectors, with iron ore being the additional sector.
- Electricity sector's weight now makes up more than 30% of the index.
- Coal and natural gas sectors' weights nearly halved to about 5.6% and 3.8% respectively.
- Crude oil and natural gas sectors have contracted continuously for 18 and 24 months, respectively.
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