Context: India’s Index of Industrial Production (IIP) recorded strong growth of 5.2% in February 2026, while the Index of Eight Core Industries (ICI) showed much weaker growth at 2.3%. This unusual divergence between two normally correlated indicators has raised concerns about underlying demand conditions and data consistency in the economy.
Index of Industrial Production (IIP):
- The Index of Industrial Production (IIP) measures short-term changes in the volume of production across key sectors of the economy, namely mining, manufacturing, and electricity.
- It is released monthly by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI), with a time lag of approximately six weeks after the reference month.
Index of Eight Core Industries (ICI):
- The Index of Eight Core Industries (ICI) is released by the Office of Economic Advisor under the Ministry of Commerce and Industry.
- It measures the combined and individual performance of production of eight core industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
- These industries collectively account for 40.27% of the total weight in the IIP, indicating their significant influence on overall industrial performance.
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