Why in news
- Official statistics released by the Ministry of Commerce and Industry recorded a slowdown in core sector output growth to 5.4% in July 2026.
- The government released a new statistical series for the index, affecting historical comparison methodology.
Information
- The Index of Core Industries tracks output across eight infrastructure-exposed sectors that constitute 40.27% of the Index of Industrial Production.
- Core sector growth moderated to 5.4% in July 2026 from 6% in the previous month, impacted by contractions in fertilizers, crude oil, and natural gas.
- The eight core components are refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilizers.
- Refinery products hold the highest weight in the index, followed by electricity and steel, while fertilizer holds the lowest weight.
- The Office of the Economic Adviser within the Department for Promotion of Industry and Internal Trade compiles and publishes this monthly index.
Key terms
Index of Industrial Production
An index measuring short-term changes in the volume of production of a basket of industrial products over a given period.
Base Year
The benchmark year against which economic indices are calculated to track real quantitative growth.
Prelims facts
- Refinery products carry the maximum weight among the eight core industries in the Index of Core Industries.
- The core index is published monthly by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry.
Mains discussion
- Explain the structural significance of the Index of Core Industries in predicting broader trends in industrial production and GDP growth.
Source: The Hindu