Index of Industrial Production

Index of Industrial Production

About

• The Index of Industrial Production (IIP) measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period. 
• Manufacturing, Mining, and Electricity are the three broad sectors in which IIP constituents fall. 
• It is published every month by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation. 
• The base year of IIP is 2011-2012.

Revised IIP

• The Ministry of Statistics and Programme Implementation recently revised the IIP by updating the item basket, revising the weighting structure, and expanding sectoral coverage to better capture recent developments in industrial activity across the economy. 
• Under the revised series, the base year has been updated from 2011–12 to 2022–23. 
• In the new IIP series, the coverage has been broadened by incorporating Gas Supply and Water Supply, Sewerage & Waste Management activities, while retaining the existing three core sectors—Mining, Manufacturing, and Electricity.  
  • Sectoral Weightage in the Revised Series: 
    • Manufacturing (76.06%) 
    • Mining & Quarrying (11.05%) 
    • Electricity & Gas Supply (10.87%) 
• Water Supply, Sewerage & Waste Management (2.02%) 
• In the Mining sector, the new series includes minor minerals and rare earth minerals in addition to major minerals. Similarly, the electricity index has been classified into renewable and non-renewable sources.
• The new basket of goods to calculate IIP consists of 1,042 products mapped to 463 item groups. The older series had just 839 items mapped to 407 item groups.

Why in News?

• According to the first official release of the revised All India Index of Industrial Production (IIP) with the new base year of 2022-23, India’s industrial output grew 4.9% year-on-year in April 2026, driven primarily by strong manufacturing activity.