Introduction
According to the official press release of the Office of the Economic Adviser (OEA, DPIIT), the combined Index of Core Industries (ICI) of eight core/infrastructure industries grew by 7.9 per cent year-on-year in September 2026 - the fastest growth of the new series.
Key Facts (from the official PDF)
- Sectoral growth: iron ore 18.4%, electricity 11.4%, coal 10.7%, refinery products 10.3%, cement 9.8%, steel 4.9%.
- Contraction: fertilisers, natural gas and crude oil.
- Cumulative growth for April-September 2026 was 5.1 per cent; main contributions: coal, refinery products, steel, iron ore.
- In the new series with base year 2022-23, the basket expanded from 8 to 9 industries - iron ore was added (on the recommendation of the Praveen Mahto committee).
- The ICI is released monthly by the OEA, DPIIT (Ministry of Commerce and Industry); it is considered a leading indicator of the IIP (in the old series their weight in the IIP was about 40%).
Exam Utility
Economic indices, base-year revision, leading indicators.
Prelims Style: Practice Questions
Question 1. ICI growth in September 2026 was:
(a) 5.1%
(b) 7.9%
(c) 9.8%
(d) 4.9%
See Answer and Reason
Answer: (b) 7.9%. 5.1% is the cumulative rate
Question 2. Which industry was newly added in the 2022-23 base series?
(a) Aluminium
(b) Iron ore
(c) Textiles
(d) Sugar
See Answer and Reason
Answer: (b) Iron ore.
Question 3. Who publishes the ICI?
(a) RBI
(b) NSO
(c) OEA, DPIIT
(d) NITI Aayog
See Answer and Reason
Answer: (c) OEA, DPIIT.
Context and Detailed Explanation
The eight core industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - are considered the "lifeline" of the economy: their output decides the input cost and pace of every other sector (construction, transport, agriculture, manufacturing). That is why the ICI is called a leading indicator of the IIP (Index of Industrial Production) - the ICI comes first and foretells the direction of the IIP (in the old series their weight in the IIP was about 40%).
The finer points of the September 2026 figures: the 18.4% jump in iron ore signals strong demand in the steel chain; the growth of electricity (11.4%) and coal (10.7%) is linked to rising energy demand; cement (9.8%) is an indicator of construction activity. On the other side, the contraction in fertilisers, natural gas and crude oil shows supply-side shortcomings.
Do not forget the administrative change: in the new series with base year 2022-23, the basket expanded from 8 to 9 industries - iron ore was added (on the recommendation of the Praveen Mahto committee). The purpose of changing the base year is to keep the index consistent with the current economic structure - both weights and the basket are updated. April-September cumulative growth is 5.1%, meaning September's 7.9% rate is well above the year's average - momentum has picked up. In the Prelims, the publisher (OEA, DPIIT), the base year and the new industry - these three facts can be asked directly.
Source
- OEA/DPIIT press release PDF (21 October 2026): https://www.eaindustry.nic.in/eight_core_infra/Press_Release_ICI_20261021.pdf
