Why in News
The Ministry of Statistics and Programme Implementation (MoSPI) launched India’s revised Index of Industrial Production (IIP) with 2022-23 as the new base year, replacing the earlier 2011-12 series, on June 1, 2026. Alongside the new series, April 2026 industrial output grew 4.9% year-on-year under the revised framework, led by manufacturing (+6.2%) and electricity (+4.9%), while mining contracted (-5.1%). The revised IIP significantly expands sectoral and product coverage to better reflect India’s evolved industrial structure.
What Is the Index of Industrial Production (IIP)?
The IIP is a composite indicator measuring the short-term changes in the volume of production of a basket of industrial products during a given period. It is released monthly by MoSPI approximately 42 days after the reference month (quick estimate) and revised in subsequent releases.
Three Sectors Covered
| Sector | Weight (2022-23 series) | April 2026 Growth |
|---|---|---|
| Manufacturing | ~77.6% | +6.2% |
| Electricity | ~8.0% | +4.9% |
| Mining | ~14.4% | -5.1% |
| Overall IIP | 100% | +4.9% |
Key Changes in the New 2022-23 Series
| Feature | Old Series (2011-12) | New Series (2022-23) |
|---|---|---|
| Base year | 2011-12 | 2022-23 |
| Products covered | 809 | 1,042 |
| Item groups | 399 | 463 |
| New item groups added | — | 120 (incl. rare earth minerals, vaccines, CCTV cameras, aircraft parts, medical devices) |
| Item groups removed | — | 64 (obsolete products) |
| Additional sectors | Mining, Mfg, Electricity | + Gas supply, Water supply, Sewerage, Waste management |
| Classification framework | NIC-2008 | NIC-2025 |
Why Revise the Base Year?
The base year of any index should reflect the current production structure, relative importance of products, and price levels of the economy. The 2011-12 base had become increasingly outdated, India’s industrial structure has changed significantly with growth in pharmaceuticals, electronics, defence manufacturing, renewable energy equipment, and space technology. The new base year captures these structural shifts.
April 2026 IIP: Sector Analysis
Use-Based Classification
| Category | Growth (April 2026) |
|---|---|
| Capital Goods | +12.8% |
| Consumer Durables | +7.1% |
| Infrastructure/Construction goods | +6.3% |
| Intermediate Goods | +5.4% |
| Primary Goods | +3.2% |
| Consumer Non-Durables | -1.2% |
- Capital goods growth at +12.8% indicates rising investment activity, a positive leading indicator for future production capacity.
- Consumer non-durables at -1.2% reflects continued stress in rural demand and FMCG consumption.
IIP vs. Other Industrial Indicators
| Indicator | Released by | Frequency | Covers |
|---|---|---|---|
| IIP | MoSPI | Monthly | Mining, Mfg, Electricity (now + utilities) |
| PMI Manufacturing | S&P Global/HSBC | Monthly | Sentiment (private survey) |
| Core Sector | DPIIT | Monthly | 8 core industries (~40% of IIP) |
| Annual Survey of Industries (ASI) | MoSPI | Annual | Detailed factory-level data |
Eight Core Industries (Component of IIP)
The Eight Core Industries have a combined weight of 40.27% in the IIP: Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilisers, Steel, Cement, Electricity.
UPSC Relevance
Prelims
- New base year: 2022-23 (replaced 2011-12)
- Released by: MoSPI
- April 2026 IIP growth: 4.9%
- Manufacturing growth: +6.2%; Mining: -5.1%; Electricity: +4.9%
- Products now covered: 1,042 across 463 item groups
- New sectors: Gas supply, water supply, sewerage, waste management
- New classification: NIC-2025 (previously NIC-2008)
Mains Angles (GS3)
- Economic statistics reform: Why do India’s economic indices need periodic base-year revisions? What are the risks of using outdated base years?
- Industrial growth analysis: What does a divergence between capital goods growth (+12.8%) and consumer non-durables (-1.2%) tell us about the nature of India’s current economic recovery?
- IIP limitations: IIP covers the organised industrial sector only, informal manufacturing (~45% of manufacturing GDP) is not captured. What alternative indicators help plug this gap?
Facts Corner
| Fact | Detail |
|---|---|
| New base year | 2022-23 (old: 2011-12) |
| Released by | MoSPI |
| April 2026 IIP growth | 4.9% |
| Manufacturing | +6.2% |
| Mining | -5.1% |
| Electricity | +4.9% |
| Products covered | 1,042 (old: 809) |
| Item groups | 463 (old: 399) |
| New items added | 120 (rare earth minerals, vaccines, CCTV cameras, aircraft parts, medical devices) |
| New sectors | Gas, water, sewerage, waste management |
| Framework | NIC-2025 |
| Capital goods growth | +12.8% |
Cite this page: India Launches New IIP Series with 2022-23 Base Year; April Industrial Output +4.9% — Ujiyari.com | Free UPSC & State PCS Current Affairs
