Core industries grow 5.4% in July 2026 (base 2022-23)
Next story · 20 AugCMLRE releases national report on deep-sea fishery resources of India’s EEZ
UPSC has already asked about this. Read the story with these questions in mind.
The Index of Core Industries grew 5.4 per cent in July 2026 over July 2025, as per provisional data released on 20 August 2026 on base year 2022-23. Iron ore, cement and electricity led the growth, while natural gas, crude oil and fertilisers shrank. April to July growth was 4.3 per cent, up from 1.5 per cent.
- Released
- 20 Aug 2026, Office of the Economic Adviser, DPIIT (Commerce)
- July 2026 growth
- 5.4% (provisional)
- June 2026 growth
- revised to 6.0% (final)
- April to July 2026
- 4.3%, against 1.5% a year earlier
- Base year
- 2022-23
- Top weight
- Electricity, 30.932
The Index of Core Industries for July 2026: what happened?
Before the full industrial output data comes, economists look at the core sectors. These are the basic inputs every factory needs: power, steel, cement, coal, fuel. When they grow, the rest of industry usually follows. That is why this index is called a lead indicator.
- The index rose 5.4% year-on-year in July 2026, a little slower than 6.0% in June.
- Iron ore grew 29.5%, cement 13.1%, electricity 9%, coal 7.6%, steel 2.9% and refinery products 2.7%.
- Natural gas, crude oil and fertilisers recorded negative growth.
- Iron ore, electricity and cement have driven growth in recent months.
What is in the new series?
- With base year 2022-23, the index has nine sectors: the eight traditional ones plus iron ore.
- Electricity carries the largest weight (30.932), followed by refinery products (22.572) and steel (17.584).
- The provisional index for a month is released on the 20th of the next month.
- The August 2026 index is due on 21 September 2026.
Why does a final revision matter?
- June 2026 was revised from 119.6 to 120.7, so its growth moved from 5.0% to 6.0%.
- So the first estimate can understate or overstate the real trend.
How did each sector do in July 2026?
| Sector | Weight | Growth |
|---|---|---|
| Electricity | 30.932 | 9.0% |
| Refinery Products | 22.572 | 2.7% |
| Steel | 17.584 | 2.9% |
| Crude Oil | 7.43 | -5.3% |
| Coal | 5.596 | 7.6% |
| Iron Ore | 4.905 | 29.5% |
| Cement | 4.41 | 13.1% |
| Natural Gas | 3.841 | -3.7% |
| Fertilizers | 2.731 | -8.0% |
| Overall | 100.00 | 5.4% |
How does the core index feed into the bigger picture?
- Core sectors produce basic inputs
- Their output is captured in the ICI each month
- The core sectors form a large share of the IIP
- Trends here signal factory output and GDP growth
- Policy makers read it for demand and investment signals
Why does the Index of Core Industries for July 2026 matter?
| Angle | What to note |
|---|---|
| Growth | Steady 5.4% growth shows industry holding up. |
| Infrastructure | Cement and steel growth reflects construction activity. |
| Energy | Electricity demand rose 9%. |
| Concern | Crude oil and natural gas keep falling, raising import needs. |
| Data | New base year 2022-23 adds iron ore to the index. |
What are the challenges in the Index of Core Industries for July 2026?
- Crude oil output has fallen year after year, so import dependence stays high.
- Fertilizer output fell 8.0% in July, a worry for the sowing season.
- Provisional numbers get revised, so one month is not a trend.
- Growth is concentrated in a few sectors.
What should be done next on the Index of Core Industries for July 2026?
- Watch the August data due on 21 September 2026.
- Domestic exploration is needed for crude oil and natural gas.
- Steady cement and steel demand depends on continued public capex.
What can Prelims ask on the Index of Core Industries for July 2026?
- ICI base year now 2022-23; nine sectors including iron ore.
- Highest weight: electricity (30.932); then refinery products, steel.
- Released by the Office of the Economic Adviser, DPIIT, on the 20th of the next month.
- July 2026: 5.4%; April to July 2026: 4.3%.
How to write about the Index of Core Industries for July 2026 in Mains
Practice question (10 marks, 150 words): What does the Index of Core Industries tell us about the health of the Indian economy? Discuss with reference to recent trends.
- Intro: ICI as lead indicator; base 2022-23.
- July 2026 data: 5.4%, sector drivers.
- Weak spots: crude oil, gas, fertilizers.
- Link with IIP, capex and energy security.
- Conclusion.
How to use this in Mains
- As per PIB (2026-08-20): the Index of Eight Core Industries grew 5.4% in July 2026 (provisional, base 2022-23).
- Core sector is a lead indicator for IIP.
Quotable data pointThe Index of Eight Core Industries grew 5.4% in July 2026 (provisional, base 2022-23).
PIB: Commerce: Index of Core Industries July 2026, 20 Aug 2026
Exam angle
Prelims: ICI composition and weights.
Practice MCQs
Original practice questions (not PYQs).
In the Index of Core Industries (base 2022-23), which sector carries the highest weight?
Answer (c) & explanation
PIB (Commerce), 20 Aug 2026: electricity 30.932.
Which of the following is included in the Index of Core Industries with base year 2022-23?
1. Iron ore
2. Cement
3. Fertilizers
Select the correct answer.
Answer (d) & explanation
PIB (Commerce), 20 Aug 2026.
Which sector recorded the highest growth in the core index in July 2026?
Answer (b) & explanation
PIB (Commerce), 20 Aug 2026: iron ore 29.5%.
Questions students ask about this
How much did core industries grow in July 2026?
5.4 per cent over July 2025, as per provisional data.
Which sector has the highest weight in the index?
Electricity, with a weight of 30.932.
What is the base year of the index?
2022-23. The new series also includes iron ore.
Which sectors shrank in July 2026?
Natural gas, crude oil and fertilizers.
Keep studying
Go deeper
Official source: PIB: Commerce: Index of Core Industries July 2026, 20 Aug 2026
facts from cited sources only; faculty review pending