- The monthly Index of Eight Core Industries (ICI) is a production volume index.
- The objective of the ICI is to provide an advance indication on production performance of industries of ‘core’ nature. These industries are likely to impact on general economic activities as well as industrial activities.
- The Eight Core Industries- Electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers- comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
- Industry Weight (In percentage):
- Petroleum & Refinery production – 28.04
- Electricity generation – 19.85
- Steel production – 17.92
- Coal production – 10.33
- Crude Oil production – 8.98
- Natural Gas production – 6.88
- Cement production – 5.37
- Fertilizers production – 2.63
- ICI is released by the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry. The base year of the ICI is 2011-12.
Why in News?
- The combined Index of Eight Core Industries (ICI) increased by 4.3 per cent (provisional) in May 2023 as compared to the Index of May 2022. The production of Cement, Fertilizers, Steel, Coal, and Refinery Products increased in May 2023 over the corresponding month of last year.
- The Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
- Mining, manufacturing, and electricity are the three broad sectors in which IIP constituents fall.
- It is compiled and published every month by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation.
- The current base year is 2011-2012.
- The Eight Core Industries comprise 40.27 per cent of the weight of items included in the IIP.