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 The 2011-12 base had become increasingly outdated — India’s industrial structure has changed significantly with growth in pharmaceuticals, electronics, defence manufacturing, renewable energy equipment, and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% |
Source: India Launches New IIP Series with 2022-23 Base Year; April Industrial Output +4.9% — Ujiyari.com | Free UPSC & State PCS Current Affairs
