Core industries grow 4.8% in August 2026 (base 2022-23)

The Index of Core Industries: what happened?

Eight, and now nine, basic industries feed almost every other sector: power, steel, cement, fuel. Their monthly index is an early signal of where industry is heading, a few weeks before the full IIP. The index now uses base year 2022-23 and includes iron ore.

• Index of Core Industries grew 4.8% y-o-y in August 2026 (provisional), against 5.0% in July [PIB].
• Cement (+12.5%), electricity (+11.6%), iron ore (+5.5%), steel (+3.4%) and refinery products (+2.6%) grew; coal, natural gas, crude oil and fertilizers contracted [PIB].

Which industries are in the index, and how heavy are they?

How should you read these weights?

• Electricity, refinery products and steel together carry well over half of the total weight.
• So a small move in electricity matters more than a large move in fertilizers.
• Iron ore is a newer entry in the 2022-23 series.

What do the numbers show?

How has the year gone so far?

How is the index released?

1. Reference month ends
2. Provisional index released on the 20th of the next month (or next working day)
3. Next month’s release revises it to the final index
4. Example: July 2026 index revised from 121.2 to 120.8, growth from 5.4% to 5.0%
5. September 2026 index due on 21 October 2026

Why does the Index of Core Industries matter?

What are the challenges in the Index of Core Industries?

• Crude oil (minus 3.6%) and natural gas (minus 4.9%) fell again, part of a long run of decline.
• Fertilizer output fell 12.4% in August 2026 and 6.7% for April to August.
• Steel growth slowed to 4.1% for April to August 2026 from 11.8% a year earlier.
• Provisional figures are often revised, as July was, from 5.4% to 5.0%.

What should be done next on the Index of Core Industries?

• Push domestic exploration to stop the fall in crude oil and gas output.
• Look into the fall in fertilizer output before the rabi season.
• Watch whether the cement and electricity pick-up lasts.

What can Prelims ask on the Index of Core Industries?

• ICI base year now 2022-23; 9 industries including iron ore.
• Highest weight: electricity (30.932), then refinery products (22.572).
• Lowest weight: fertilizers (2.731).
• Provisional ICI comes out on the 20th of the following month.
• August 2026: overall 4.8%; cement highest at 12.5%.

How to write about the Index of Core Industries in Mains

Practice question (10 marks, 150 words): What does the Index of Core Industries tell us about the health of the Indian economy? Illustrate with recent data.

• Intro: what ICI is, base 2022-23, nine industries.
• Weights and why electricity, refinery products and steel dominate.
• August 2026 data: drivers and laggards.
• Concerns: oil, gas, fertilizers.
• Conclude: early signal for IIP and policy.