Combined Index of Eight Core Industries (ICI) Records 0.5% Growth in May 2026: Complete Analysis

Combined Index of Eight Core Industries (ICI) Registers 0.5% Growth in May 2026

India's Combined Index of Eight Core Industries (ICI) recorded a provisional year-on-year growth of 0.5% in May 2026 compared to May 2025. Although overall industrial growth remained positive, it was significantly lower due to weak performance in several major sectors, especially petroleum refinery products and coal. The latest data highlights mixed trends across India's infrastructure industries, with Steel, Cement, and Electricity emerging as the primary drivers of growth, while five sectors witnessed negative growth.

For competitive examinations such as UPSC, SSC, Banking, RBI, NABARD, Railways, CDS, CAPF, and State PSCs, the Index of Eight Core Industries remains an important topic under the Indian Economy section.

What is the Index of Eight Core Industries (ICI)?

The Index of Eight Core Industries (ICI) is an important economic indicator that measures the production performance of India's eight key infrastructure industries.

Base Year: 2011-12 = 100

The index tracks production trends in the following eight industries:

• Coal
• Crude Oil
• Natural Gas
• Petroleum Refinery Products
• Fertilizers
• Steel
• Cement
• Electricity

These industries together contribute 40.27% to the Index of Industrial Production (IIP), making the ICI one of the earliest indicators of industrial and economic activity in India.

Why is the ICI Important?

The Index of Eight Core Industries is widely used because it:

• Indicates the health of India's industrial sector.
• Serves as a leading indicator of the Index of Industrial Production (IIP).
• Reflects infrastructure and manufacturing performance.
• Helps policymakers formulate industrial and economic policies.
• Assists economists in assessing economic growth trends.

Major Highlights of ICI Report (May 2026)

• Overall ICI Growth (May 2026): 0.5% (Provisional)
• Final Growth for April 2026: 1.8%
• Cumulative Growth (April–May 2026-27): 1.1% (Provisional)

The modest growth indicates that India's industrial sector remained under pressure despite strong performances in selected industries.

Weightage of Eight Core Industries

The contribution of each sector in the ICI is as follows:

Exam Tip: Petroleum Refinery Products carry the highest weight in the ICI, making changes in refinery output highly influential on the overall index.

Sector-wise Performance in May 2026

Coal

• Production declined by 9.3% compared to May 2025.
• Cumulative decline during April–May: 9.1%.

Crude Oil

• Production contracted by 4.6%.
• Cumulative decline stood at 4.2%.

Natural Gas

• Output decreased by 4.9%.
• Cumulative production fell by 4.5%.

Petroleum Refinery Products

• Production declined sharply by 8.7%.
• Cumulative decline reached 4.7%.

Given its highest weight in the ICI, this sector significantly affected the overall growth rate.

Fertilizers

• Production decreased by 0.9%.
• Cumulative decline stood at 4.5%.

Steel

Steel emerged as one of the strongest-performing industries.

• Production increased by 5%.
• Cumulative growth reached 5.2%.

Cement

The cement industry continued to perform strongly.

• Production increased by 8.4%.
• Cumulative growth stood at 8.3%.

Electricity

Electricity production also registered positive growth and remained one of the key contributors to the overall increase in the index, reflecting sustained industrial and infrastructure demand.

Key Economic Analysis

The May 2026 data presents a mixed picture of India's industrial economy. Positive growth in Steel, Cement, and Electricity indicates that infrastructure development, construction activities, and manufacturing demand continue to support economic expansion.

However, declines in Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, and Fertilizers suggest continued challenges in the energy and extractive sectors.

The sharp contraction in the Petroleum Refinery Products segment was particularly significant because it has the highest weight in the ICI. This largely limited the overall growth to just 0.5%, despite robust performances in other sectors.

Why is this Important for Competitive Exams?

Questions related to the Eight Core Industries Index are frequently asked in:

• UPSC Civil Services Examination
• State PCS Exams
• SSC CGL & CHSL
• Banking Exams (IBPS, SBI, RBI)
• NABARD
• Railways
• CAPF & CDS
• UGC NET (Economics & Commerce)

Candidates should remember:

• Base Year: 2011-12
• Total Industries: 8
• Contribution to IIP: 40.27%
• Highest Weight: Petroleum Refinery Products (28.04%)
• Lowest Weight: Fertilizers (2.63%)

Quick Revision Points 

• ICI grew 0.5% in May 2026 (Provisional).
• April 2026 final growth stood at 1.8%.
• April–May 2026-27 cumulative growth was 1.1%.
• Steel and Cement remained the strongest-performing sectors.
• Petroleum Refinery Products recorded one of the sharpest declines.
• Only Steel, Cement, and Electricity registered positive growth.
• Five sectors witnessed contraction.
• Petroleum Refinery Products carry the highest weight in the index.
• ICI contributes 40.27% to the Index of Industrial Production (IIP).

Conclusion

The May 2026 Index of Eight Core Industries indicates that India's industrial growth remains resilient but uneven. While infrastructure-driven sectors such as Steel, Cement, and Electricity continue to expand, persistent weakness in energy-related industries has restrained overall industrial momentum. Since the ICI serves as a leading indicator of the Index of Industrial Production (IIP), these trends will be closely monitored to assess the future trajectory of India's manufacturing and infrastructure sectors.

Frequently Asked Questions (FAQs)

Q1. What was the growth rate of the Index of Eight Core Industries in May 2026?

Answer: The Index of Eight Core Industries recorded a provisional growth of 0.5% in May 2026 compared to May 2025.

Q2. Which sector has the highest weight in the Index of Eight Core Industries?

Answer: Petroleum Refinery Products have the highest weight at 28.04%.

Q3. How many industries are included in the ICI?

Answer: The Index covers eight core infrastructure industries.

Q4. What is the base year of the Index of Eight Core Industries?

Answer: The base year is 2011-12 = 100.

Q5. Why is the Index of Eight Core Industries important?

Answer: It acts as a leading indicator of industrial production, reflects infrastructure sector performance, and contributes 40.27% to the Index of Industrial Production (IIP), making it an important measure of India's economic activity.