Index of Industrial Production (IIP): Key Highlights
Current Performance (April 2026)
- IIP Growth: 4.9% (down from 5.8% in April 2025)
- Manufacturing Sector: Grew by 6.2% (holds ~76% weight in IIP basket)
- Mining and Quarrying: Contracted sharply by over 5%
- Capital Goods: Growth accelerated to 16%
- Infrastructure/Construction Goods: Growth at 7.1%
- Moderated Growth: Primary goods, consumer durables, and consumer non-durables
Base Year Revision: 2011-12 to 2022-23
The Ministry of Statistics and Programme Implementation (MoSPI) has officially updated the IIP base year to 2022-23, making it the latest major macroeconomic indicator to be revised alongside GDP. Key changes:
- Base Year Index Value: Set at 100
- Expanded Product Basket: 1,042 products mapped to 463 item groups (increased from 839 items and 407 groups)
- Weight Revision: Aligned with updated Gross Value Added (GVA) 2022-23 series
- Significance: Current production is measured as percentage against the base year
Broadened Sectoral Coverage
The revised IIP now incorporates additional sectors:
- Traditional Sectors: Mining and quarrying, manufacturing, electricity
- Newly Added: Gas supply, water supply, sewerage, and waste management
Renewable vs Non-Renewable Electricity Split
Electricity generation is now cleanly divided between:
- Renewable sources
- Non-renewable sources
This provides a clearer view of India's green energy transition progress.
About IIP
- Published by: National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation (MoSPI)
- Frequency: Monthly
- Purpose: Reliable barometer for industrial sector health; measures short-term changes in industrial production volume
- Significance for Policymakers:
- Early measure of industrial performance
- Helps RBI and analysts assess economic momentum
- Monitors sectoral demand trends
- Forecasts future GDP growth
- High-frequency indicator since GDP data is released quarterly
Constitutional/Institutional Context
- Ministry: Statistics and Programme Implementation (MoSPI)
- Statistical Office: National Statistical Office (NSO)
- Alignment: With GVA series 2022-23
Economic Significance
IIP serves as a critical macroeconomic indicator because:
- It provides timely (monthly) assessment of industrial activity
- Acts as leading indicator for GDP growth
- Helps RBI in monetary policy formulation
- Enables sector-specific analysis for industrial planning
- Tracks India's manufacturing and energy transition progress
Implications of Base Year Revision
- Better Alignment: Reflects current economic structure
- More Comprehensive Coverage: Includes emerging sectors
- Improved Accuracy: Updated weights based on latest GVA data
- Tracking Green Transition: Renewable/non-renewable electricity split offers better environmental monitoring