Office of Economic Adviser to Release Revised Index of Core Industries Series with Base Year 2022–23

Why in news

The Office of Economic Adviser is releasing a revised Index of Core Industries (ICI) series with a new base year (2022-23) and an expanded list of core industries, including Iron Ore. This revision aims to provide a more current and comprehensive measure of industrial activity.

Exam relevance

GS3 · Economy · Prelims · Mains

Key facts

1. The Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), will release the revised Index of Core Industries (ICI) series.
2. The new base year for the ICI series will be 2022-23, replacing the previous base year of 2011-12.
3. The revised ICI series will include Iron Ore as a core industry, expanding the total number of core industries to nine.
4. The weights for the ICI (2022-23) series are derived from the Index of Industrial Production (IIP) 2022-23 series.
5. The revised series will include provisional data for June 2026 and back series data from April 2023 to May 2026.

Prelims pointers

• The Index of Core Industries (ICI) is compiled monthly.
• The new base year for the ICI is 2022-23.
• Iron Ore has been added as a core industry in the revised ICI series.
• The weights for the ICI are derived from the Index of Industrial Production (IIP).

Mains practice question

Discuss the significance of the revised Index of Core Industries (ICI) series with a new base year and expanded composition for India's economic policy formulation and industrial growth monitoring.

Static linkage

The Index of Core Industries (ICI) is a crucial economic indicator that measures the combined and individual performance of eight key industrial sectors. It serves as a precursor to the Index of Industrial Production (IIP) and provides insights into the health of the manufacturing sector. The revision of its base year and composition reflects efforts to keep economic statistics aligned with current industrial realities and improve their accuracy.

Significance

The revised ICI series with a new base year (2022-23) will offer a more up-to-date reflection of the Indian economy's industrial performance. The inclusion of Iron Ore acknowledges its growing importance in industrial production. The back series data will allow for better trend analysis and comparison. This updated index is vital for policymakers, economists, and businesses to understand industrial growth patterns, formulate economic policies, and make informed investment decisions.