The Hindu Editorial • July 24, 2026 • Read Original

Core upgrade: On the Index of Core Industries

The updated Index of Core Industries rounds out economic data upgrades

Scoreclever

Win Exams Cleverly

The Hindu Read Original

8 min read

Analysis of editorial from The Hindu newspaper on July 24, 2026

Core upgrade: On the Index of Core Industries

The updated Index of Core Industries rounds out economic data upgrades

Index of Core IndustriesIndian EconomyWPIEconomic IndicatorsBase Year Revision

Sentences

Sentence 1 of 21

English Original

The Index of Core Industries (ICI) has finally joined the country’s other economic metrics in becoming up-to-date and representative of the economy.

Sentence Breakdown

Part 1

The (ICI)

The key measurement index of India’s main industries (abbreviated as ICI)

Part 2

has finally joined the country’s other economic

has at last become like India’s other economic measurements

Part 3

in becoming up-to-date and representative of the economy.

by being modernized so that it correctly shows the current state of India’s business and production.

Context and Background

Index of Core Industries (ICI) Revisions

The Index of Core Industries (ICI) is released monthly by the Office of the Economic Adviser, DPIIT under the Ministry of Commerce and Industry. In July 2026, the government updated the base year of the index from 2011-12 to 2022-23 to make it more representative of modern economic structures. Along with the base year revision, the index’s composition was expanded to include iron ore as a new sector, and its combined weight in the Index of Industrial Production (IIP) was revised to 32.88%.

Sentence 2 of 21

English Original

The other metrics such as the national accounts, Consumer Price Index (CPI), Wholesale Price Index (WPI), and the Index of Industrial Production (IIP) were updated earlier this year, although even those were after considerable delays.

Sentence Breakdown

Part 1

The other metrics such as the , (CPI), (WPI),

The other economic measures, like the country’s overall financial reports, retail inflation index (CPI), and wholesale inflation index (WPI),

Part 2

and the (IIP)

and the measure of factory and manufacturing output (IIP)

Part 3

were updated earlier this year,

were revised and given new base years in the early months of 2026,

Part 4

although even those were after delays.

even though these changes were made after a long time and after missing many deadlines.

Context and Background

Modernization of India

In early 2026, the Indian government carried out major upgrades to key economic metrics. The Wholesale Price Index (WPI) base year was revised from 2011-12 to 2022-23 (released on June 15, 2026), expanding its basket of goods. Similarly, the Consumer Price Index (CPI) basket was updated using a new 2024 base year. These revisions are crucial to ensure that economic policy decisions are based on data that accurately reflects modern consumption and production patterns.

Sentence 3 of 21

English Original

The ICI has now joined their ranks with the June data being based on a new series with an updated base year, an additional sector being covered, and revised weights and methodologies.

Sentence Breakdown

Part 1

The ICI has now

The Index of Core Industries has now also become part of this updated group

Part 2

with the June data being based on a new series

since the data for June is calculated using a new set of data points

Part 3

with an updated , an additional sector being covered,

which has a new reference year, includes one more industry sector,

Part 4

and revised weights and .

and uses changed weights for sectors and new ways of calculating the numbers.

Sentence 4 of 21

English Original

This is a welcome upgrade.

Sentence Breakdown

Part 1

This is a welcome upgrade.

This revision of the index is a positive and much-needed change.

Sentence 5 of 21

English Original

The performance of these core industries is a vital barometer of the state of the economy.

Sentence Breakdown

Part 1

The performance of these core industries

How well these key primary industries produce goods

Part 2

is a vital of the state of the economy.

is an extremely important indicator showing how healthy the country’s overall economy is.

Sentence 6 of 21

English Original

In the new series, the previous eight sectors have become nine, with the vital inclusion of the iron ore sector.

Sentence Breakdown

Part 1

In the new series,

In the newly updated index,

Part 2

the previous eight sectors have become nine,

the earlier eight industries have now increased to nine,

Part 3

with the vital inclusion of the iron ore sector.

due to the important addition of the iron ore mining industry.

Context and Background

Inclusion of Iron Ore in the ICI Basket

In the updated Index of Core Industries (base year 2022-23), iron ore has been officially included as the ninth core industry, with an assigned weight of 4.905%. Iron ore is the vital raw material for steel production. Its inclusion makes the index a more accurate reflection of India’s basic industrial output and resource development.

Sentence 7 of 21

English Original

Improvements have also been made to how the steel and coal sectors are measured in order to remove the previous double-counting that was taking place.

Sentence Breakdown

Part 1

Improvements have also been made

Changes for the better have also been introduced

Part 2

to how the steel and coal sectors are measured

in the way we count and calculate the production of the steel and coal industries

Part 3

in order to remove the previous that was taking place.

so that we stop counting the same raw materials or output twice, which was happening before.

Context and Background

Elimination of Double-Counting in Coal & Steel

To improve data accuracy, the new index series changed how coal and steel are measured. For the coal sector, the index now measures only ‘raw coal’ production, excluding coal middlings and washed coal to prevent counting the same coal twice. For the steel sector, the index has shifted to using ‘gross production’ rather than ‘net production’ data to align with IIP standards.

Sentence 8 of 21

English Original

The addition of a sector would naturally change the distribution of weights of the sectors in the index, but the final weights also reflect a broader shift in economic activity.

Sentence Breakdown

Part 1

The addition of a sector

Adding a new industry (like iron ore)

Part 2

would naturally change the of weights of the sectors in the index,

would obviously alter how the percentage share (importance) is divided among all the sectors in the index,

Part 3

but the final weights

however, the final percentage values decided by the government

Part 4

also reflect a broader shift in economic activity.

also show a wider change in how business and manufacturing are changing in the country.

Sentence 9 of 21

English Original

The coal and natural gas sectors have seen their weights nearly halve to about 5.6% and 3.8%, respectively.

Sentence Breakdown

Part 1

The coal and natural gas sectors

The parts of the economy that produce coal and natural gas

Part 2

have seen their weights nearly

have had their percentage importance in the index reduced to almost half of what they were before

Part 3

to about 5.6% and 3.8%, .

falling to about 5.6% for coal and 3.8% for natural gas, in that specific order.

Context and Background

Weight Shift of Coal & Natural Gas

In the old 2011-12 base year series of the Index of Core Industries, coal held a weight of 10.33% and natural gas held 6.88%. Under the new 2022-23 series, their weights have fallen to 5.6% and 3.8% respectively. This reduction reflects the declining relative prominence of these fossil fuels in India’s updated economic measurement model.

Sentence 10 of 21

English Original

On the other hand, the electricity sector now makes up more than 30% of the index from less than 20% in the previous series.

Sentence Breakdown

Part 1

In contrast to the decreasing weights of coal and natural gas,

Part 2

the electricity sector now

the power and electricity industry now accounts for

Part 3

more than 30% of the index

over thirty percent of the entire core industries index,

Part 4

from less than 20% in the previous series.

rising from a share of under twenty percent in the older index series.

Context and Background

Electricity

In the old 2011-12 series, electricity carried a weight of 19.85% (less than 20%). In the revised 2022-23 base year series, this has increased to 30.932% (more than 30%). This significant rise reflects India’s rapid industrialization, massive household electrification programs, and the growth of the digital and green technology sectors.

Sentence 11 of 21

English Original

All of this perhaps reflects the rising share of renewables in electricity generation, even as demand for electricity itself surges.

Sentence Breakdown

Part 1

All of this perhaps reflects

These weight changes probably show

Part 2

the rising share of in electricity generation,

the increasing portion of clean, green energy sources (like solar and wind) used to make power,

Part 3

even as demand for electricity itself .

at the same time that the overall need for power in the country is rising very fast.

Context and Background

Rise of Renewable Energy in India

As of 2026, non-fossil fuel sources contribute about 29% of India’s total electricity generation, with total installed renewable capacity exceeding 280 GW. India achieved a milestone of having over 42% of its installed power capacity from renewables (such as solar and wind). This structural shift explains why the electricity sector’s weight has increased in index calculations while fossil fuel weights have decreased.

Sentence 12 of 21

English Original

The performance of the index in June 2026, with a five-month-high growth of 5%, would suggest that Indian industry is shrugging off the slump induced by the West Asia crisis.

Sentence Breakdown

Part 1

The performance of the index in June 2026, with a five-month-high growth of 5%,

The results of the index in June 2026, which showed a five percent growth rate (the highest in five months),

Part 2

would suggest that Indian industry

would indicate that businesses and factories in India

Part 3

is the

are recovering from and ignoring the economic slowdown

Part 4

by the West Asia crisis.

which was caused by the geopolitical conflict in the Middle East.

Context and Background

West Asia Geopolitical Crisis & Indian Industry

The 2026 West Asia crisis (escalating conflicts affecting trade routes like the Strait of Hormuz and the Red Sea) led to a spike in global crude oil prices and severe shipping bottlenecks. Indian industries faced higher logistical costs, container shortages, and inflated raw material expenses, creating a brief industrial slump in early 2026. The 5% growth in June indicates that local production is beginning to recover from these external supply-chain shocks.

Sentence 13 of 21

English Original

However, two of the strong growth numbers — iron ore by 43.9% and electricity by 9.8% — were due to a statistical base effect since both sectors had contracted in June last year.

Sentence Breakdown

Part 1

However, two of the strong growth numbers — iron ore by 43.9% and electricity by 9.8% —

However, two of the high growth rates, which are iron ore at 43.9% and electricity at 9.8%,

Part 2

were due to a statistical

were caused by a mathematical comparison pattern called the base effect,

Part 3

since both sectors had in June last year.

because both of these industries had actually shrunk in size or output in June of the previous year.

Context and Background

Understanding the Base Effect

The base effect refers to the impact of the comparison point (the ‘base’) on the calculation of a growth rate. If production was extremely low or contracted in the previous year’s corresponding month (June last year), even a modest return to normal production in the current month (June this year) will show up as a huge, artificially inflated percentage increase.

Sentence 14 of 21

English Original

It remains to be seen whether the numbers will remain this positive once that base effect wears off in the months ahead.

Sentence Breakdown

Part 1

We do not know yet and have to wait and see

Part 2

whether the numbers will remain this positive

if the growth percentages will stay this high and good

Part 3

once that base effect in the months ahead.

after the statistical comparison factor disappears in the coming months.

Sentence 15 of 21

English Original

The new series highlights some of the systemic issues that the old series did, such as the persistent contraction of the crude oil and natural gas sectors.

Sentence Breakdown

Part 1

The new series highlights

The newly updated index shows very clearly

Part 2

some of the issues that the old series did,

some of the deep-rooted, structural problems that the older index also showed,

Part 3

such as the of the crude oil and natural gas sectors.

for example, the continuous shrinking of production in the crude oil and natural gas industries.

Context and Background

Stagnating Crude Oil & Gas Production

India’s crude oil and natural gas production has been declining for years. The main causes are the natural depletion of old, legacy fields (like those run by ONGC), a lack of new high-yield discoveries, and the high cost and technical difficulty of deep-sea exploration. This persistent contraction has forced India to import about 89% of its crude oil and 51% of its natural gas.

Sentence 16 of 21

English Original

They have contracted continuously for 18 and 24 months, respectively.

Sentence Breakdown

Part 1

have contracted

These two sectors (crude oil and natural gas) have shrunk in production month after month without stopping

Part 2

for 18 and 24 months, respectively.

for eighteen months (crude oil) and twenty-four months (natural gas), in that specific order.

Sentence 17 of 21

English Original

If India does not have these resources, that is one thing.

Sentence Breakdown

Part 1

If India does not have ,

If India does not possess underground reserves of oil and gas,

Part 2

that is one thing.

that is understandable and can be accepted (since we cannot produce what we do not have).

Sentence 18 of 21

English Original

But if it has them and still is not able to extract them economically, then that is a serious shortcoming.

Sentence Breakdown

Part 1

But if it has them

But if India does possess these oil and gas reserves

Part 2

and still is not able to them ,

and is still unable to take them out of the ground in a way that is profitable,

Part 3

then that is a serious .

then that failure is a major weakness and policy flaw.

Sentence 19 of 21

English Original

The update of the ICI and the recent upgrade of the WPI would have been a good time for a broader statistical reorganisation.

Sentence Breakdown

Part 1

The update of the ICI and the recent upgrade of the WPI

The revision of the Index of Core Industries and the recent changes made to the Wholesale Price Index

Part 2

would have been a good time

would have provided a perfect opportunity

Part 3

for a broader .

to rearrange and consolidate how the government manages and groups its data departments.

Sentence 20 of 21

English Original

With the Ministry of Statistics and Programme Implementation handling the CPI and the IIP, it only makes sense for the WPI and ICI to move to it from their current home in the Ministry of Commerce and Industry.

Sentence Breakdown

Part 1

With the Ministry of Statistics and Programme Implementation handling the CPI and the IIP,

Since the Ministry of Statistics and Programme Implementation (the statistics department of the government) already manages the Consumer Price Index (retail inflation) and the Index of Industrial Production (factory output),

Part 2

it only

it is only logical and practical

Part 3

for the WPI and ICI to move to it

that the Wholesale Price Index and the Index of Core Industries are also transferred to this same ministry

Part 4

from their current home in the Ministry of Commerce and Industry.

instead of keeping them under their current department, which is the Ministry of Commerce and Industry.

Context and Background

Statistical Administration in India

Currently, economic indicators in India are compiled by different ministries. The Ministry of Statistics and Programme Implementation (MoSPI) compiles the CPI and IIP. Meanwhile, the Office of the Economic Adviser, under the Ministry of Commerce and Industry, compiles the WPI and ICI. Moving all key indices under MoSPI would centralize economic data collection, reduce bureaucratic overlap, and align methodologies.

Sentence 21 of 21

English Original

That change can still be made.

Sentence Breakdown

Part 1

That change can still be made.

This administrative transfer is still possible and can be done in the future.

Sentence 1 of 21

Sentences Breakdown

Editorial Summary

5-Point Summary

1 The Index of Core Industries (ICI) has been updated with a new base year, revised weights, and the inclusion of iron ore as the ninth sector.
2 This upgrade follows similar revisions to other key economic indicators, such as CPI, WPI, IIP, and national accounts, making data more representative.
3 Sectoral weight adjustments reflect shifts in the economy, showing a significant drop in coal and natural gas weights, while electricity’s share has surged past 30%.
4 Although June 2026 data shows a 5% growth, much of it was driven by statistical base effects in the iron ore and electricity sectors after last year’s contraction.
5 The editorial advocates for statistical reorganisation by moving WPI and ICI tracking to the Ministry of Statistics and Programme Implementation for better coordination.

Tone of the Editorial

analytical

Why this tone?

The editorial systematically evaluates the changes in the Index of Core Industries, dissecting the reasons behind growth rates (such as the statistical base effect) and analyzing the shifts in sector weights. It objectively assesses positive developments while highlighting persistent systemic weaknesses in resource extraction.

Sentence 1 of 21

The Index of Core Industries (ICI) has finally joined the country’s other economic metrics in becoming up-to-date and representative of the economy.

Sentence Breakdown

Part 1

The Index of Core Industries (ICI)

The key measurement index of India’s main industries (abbreviated as ICI)

Part 2

has finally joined the country’s other economic metrics

has at last become like India’s other economic measurements

Part 3

in becoming up-to-date and representative of the economy.

by being modernized so that it correctly shows the current state of India’s business and production.

Sentence 2 of 21

Sentence Breakdown

Part 1

The other metrics such as the national accounts, Consumer Price Index (CPI), Wholesale Price Index (WPI),

The other economic measures, like the country’s overall financial reports, retail inflation index (CPI), and wholesale inflation index (WPI),

Part 2

and the Index of Industrial Production (IIP)

and the measure of factory and manufacturing output (IIP)

Part 3

were updated earlier this year,

were revised and given new base years in the early months of 2026,

Part 4

although even those were after considerable delays.

even though these changes were made after a long time and after missing many deadlines.

Sentence 3 of 21

The ICI has now joined their ranks with the June data being based on a new series with an updated base year, an additional sector being covered, and revised weights and methodologies.

Sentence Breakdown

Part 1

The ICI has now joined their ranks

The Index of Core Industries has now also become part of this updated group

Part 2

with the June data being based on a new series

since the data for June is calculated using a new set of data points

Part 3

with an updated base year, an additional sector being covered,

which has a new reference year, includes one more industry sector,

Part 4

and revised weights and methodologies.

and uses changed weights for sectors and new ways of calculating the numbers.

Sentence 4 of 21

This is a welcome upgrade.

Sentence Breakdown

Part 1

This is a welcome upgrade.

This revision of the index is a positive and much-needed change.

Sentence 5 of 21

The performance of these core industries is a vital barometer of the state of the economy.

Sentence Breakdown

Part 1

The performance of these core industries

How well these key primary industries produce goods

Part 2

is a vital barometer of the state of the economy.

is an extremely important indicator showing how healthy the country’s overall economy is.

Sentence 6 of 21

In the new series, the previous eight sectors have become nine, with the vital inclusion of the iron ore sector.

Sentence Breakdown

Part 1

In the new series,

In the newly updated index,

Part 2

the previous eight sectors have become nine,

the earlier eight industries have now increased to nine,

Part 3

with the vital inclusion of the iron ore sector.

due to the important addition of the iron ore mining industry.

Sentence 7 of 21

Improvements have also been made to how the steel and coal sectors are measured in order to remove the previous double-counting that was taking place.

Sentence Breakdown

Part 1

Improvements have also been made

Changes for the better have also been introduced

Part 2

to how the steel and coal sectors are measured

in the way we count and calculate the production of the steel and coal industries

Part 3

in order to remove the previous double-counting that was taking place.

so that we stop counting the same raw materials or output twice, which was happening before.

Sentence 8 of 21

The addition of a sector would naturally change the distribution of weights of the sectors in the index, but the final weights also reflect a broader shift in economic activity.

Sentence Breakdown

Part 1

The addition of a sector

Adding a new industry (like iron ore)

Part 2

would naturally change the distribution of weights of the sectors in the index,

would obviously alter how the percentage share (importance) is divided among all the sectors in the index,

Part 3

but the final weights

however, the final percentage values decided by the government

Part 4

also reflect a broader shift in economic activity.

also show a wider change in how business and manufacturing are changing in the country.

Sentence 9 of 21

The coal and natural gas sectors have seen their weights nearly halve to about 5.6% and 3.8%, respectively.

Sentence Breakdown

Part 1

The coal and natural gas sectors

The parts of the economy that produce coal and natural gas

Part 2

have seen their weights nearly halve

have had their percentage importance in the index reduced to almost half of what they were before

Part 3

to about 5.6% and 3.8%, respectively.

falling to about 5.6% for coal and 3.8% for natural gas, in that specific order.

Sentence 10 of 21

On the other hand, the electricity sector now makes up more than 30% of the index from less than 20% in the previous series.

Sentence Breakdown

Part 1

On the other hand,

In contrast to the decreasing weights of coal and natural gas,

Part 2

the electricity sector now makes up

the power and electricity industry now accounts for

Part 3

more than 30% of the index

over thirty percent of the entire core industries index,

Part 4

from less than 20% in the previous series.

rising from a share of under twenty percent in the older index series.

Sentence 11 of 21

All of this perhaps reflects the rising share of renewables in electricity generation, even as demand for electricity itself surges.

Sentence Breakdown

Part 1

All of this perhaps reflects

These weight changes probably show

Part 2

the rising share of renewables in electricity generation,

the increasing portion of clean, green energy sources (like solar and wind) used to make power,

Part 3

even as demand for electricity itself surges.

at the same time that the overall need for power in the country is rising very fast.

Sentence 12 of 21

The performance of the index in June 2026, with a five-month-high growth of 5%, would suggest that Indian industry is shrugging off the slump induced by the West Asia crisis.

Sentence Breakdown

Part 1

The performance of the index in June 2026, with a five-month-high growth of 5%,

The results of the index in June 2026, which showed a five percent growth rate (the highest in five months),

Part 2

would suggest that Indian industry

would indicate that businesses and factories in India

Part 3

is shrugging off the slump

are recovering from and ignoring the economic slowdown

Part 4

induced by the West Asia crisis.

which was caused by the geopolitical conflict in the Middle East.

Sentence 13 of 21

However, two of the strong growth numbers — iron ore by 43.9% and electricity by 9.8% — were due to a statistical base effect since both sectors had contracted in June last year.

Sentence Breakdown

Part 1

However, two of the strong growth numbers — iron ore by 43.9% and electricity by 9.8% —

However, two of the high growth rates, which are iron ore at 43.9% and electricity at 9.8%,

Part 2

were due to a statistical base effect

were caused by a mathematical comparison pattern called the base effect,

Part 3

since both sectors had contracted in June last year.

because both of these industries had actually shrunk in size or output in June of the previous year.

Sentence 14 of 21

It remains to be seen whether the numbers will remain this positive once that base effect wears off in the months ahead.

Sentence Breakdown

Part 1

It remains to be seen

We do not know yet and have to wait and see

Part 2

whether the numbers will remain this positive

if the growth percentages will stay this high and good

Part 3

once that base effect wears off in the months ahead.

after the statistical comparison factor disappears in the coming months.

Sentence 15 of 21

The new series highlights some of the systemic issues that the old series did, such as the persistent contraction of the crude oil and natural gas sectors.

Sentence Breakdown

Part 1

The new series highlights

The newly updated index shows very clearly

Part 2

some of the systemic issues that the old series did,

some of the deep-rooted, structural problems that the older index also showed,

Part 3

such as the persistent contraction of the crude oil and natural gas sectors.

for example, the continuous shrinking of production in the crude oil and natural gas industries.

Sentence 16 of 21

They have contracted continuously for 18 and 24 months, respectively.

Sentence Breakdown

Part 1

They have contracted continuously

These two sectors (crude oil and natural gas) have shrunk in production month after month without stopping

Part 2

for 18 and 24 months, respectively.

for eighteen months (crude oil) and twenty-four months (natural gas), in that specific order.

Sentence 17 of 21

If India does not have these resources, that is one thing.

Sentence Breakdown

Part 1

If India does not have these resources,

If India does not possess underground reserves of oil and gas,

Part 2

that is one thing.

that is understandable and can be accepted (since we cannot produce what we do not have).

Sentence 18 of 21

But if it has them and still is not able to extract them economically, then that is a serious shortcoming.

Sentence Breakdown

Part 1

But if it has them

But if India does possess these oil and gas reserves

Part 2

and still is not able to extract them economically,

and is still unable to take them out of the ground in a way that is profitable,

Part 3

then that is a serious shortcoming.

then that failure is a major weakness and policy flaw.

Sentence 19 of 21

The update of the ICI and the recent upgrade of the WPI would have been a good time for a broader statistical reorganisation.

Sentence Breakdown

Part 1

The update of the ICI and the recent upgrade of the WPI

The revision of the Index of Core Industries and the recent changes made to the Wholesale Price Index

Part 2

would have been a good time

would have provided a perfect opportunity

Part 3

for a broader statistical reorganisation.

to rearrange and consolidate how the government manages and groups its data departments.

Sentence 20 of 21

Sentence Breakdown

Part 1

With the Ministry of Statistics and Programme Implementation handling the CPI and the IIP,

Part 2

it only makes sense

it is only logical and practical

Part 3

for the WPI and ICI to move to it

that the Wholesale Price Index and the Index of Core Industries are also transferred to this same ministry

Part 4

from their current home in the Ministry of Commerce and Industry.

instead of keeping them under their current department, which is the Ministry of Commerce and Industry.

Sentence 21 of 21

That change can still be made.

Sentence Breakdown

Part 1

That change can still be made.

This administrative transfer is still possible and can be done in the future.

Reading Comprehension

Practice questions based on this editorial

Reading Comprehension - Index of Core Industries

Practice reading comprehension questions based on the editorial about the updated Index of Core Industries.

7 Questions Passing: 70%

Explore by Category

Editorial Categories

Politics and Governance 7 Economy 5 International Relations 2 Science and Technology 2 Environment 2 Society 0 Security 1 Infrastructure and Energy 2 Media and Communication 1 Miscellaneous 5

Vocabulary Feeds

Challenging Vocabulary 131 Idioms and Phrases 80 Phrasal Verbs 42

About Scoreclever

Your Complete Learning Ecosystem

Scoreclever helps you master Current Affairs, English Language, and General Awareness for all Banking, SSC, Railway, and Defence exams. The Scoreclever app has innovative learning techniques that make memorization and revision effortless.

Explore Scoreclever

Anything wrong in this content?

Give feedback

Request a feature?

Contact support

Looking to contribute?

Contact our team

Core upgrade: On the Index of Core Industries

Reading Comprehension

Reading Comprehension - Index of Core Industries

Explore by Category

Share this editorial

About Scoreclever

Anything wrong in this content?

Request a feature?

Looking to contribute?