Govt unveils new IIP series with revision of base year
The IIP is released every month with a time lag of 28 days from the reference month
The IIP is released every month with a time lag of 28 days from the reference month
The IIP is released every month with a time lag of 28 days from the reference month
• The All India Index of Industrial Production (IIP) growth rate for the month of April 2026 is 4.9 per cent as compared to April 2025.
• The quick estimate of IIP stands at 118.9 against 113.1 in April 2025.
• Manufacturing, which carries the highest weight in the index at 76.06 per cent, grew 6.2 per cent during the month and emerged as the principal driver of industrial expansion.
• Electricity and Gas Supply recorded growth of 4.9 per cent.
• Water Supply, Sewerage and Waste Management expanded by 6.6 per cent.
• Mining and Quarrying, however, contracted by 5.1 per cent during the period. Within manufacturing, 17 of the 23 industry groups recorded positive growth in April.
What is Index of Industrial Production (IIP)?
• The Index of Industrial Production (IIP) is a composite indicator designed to measure the changes in the volume of the production of item basket over a period of time with respect to its base year.
• It is defined as a summary measure that measures the changes in the volume of industrial production of a representative basket of industrial products during a particular period with respect to a chosen base period.
• The IIP is compiled and released by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
• The IIP is released every month with a time lag of 28 days from the reference month.
History of IIP
• In India, the first official attempt to compute the Index of Industrial Production (IIP) was made much earlier than the first recommendation on the subject came at the international level.
• The Office of the Economic Adviser, ministry of commerce and industry made the first attempt of compilation and release of IIP with base year 1937, covering 15 important industries, accounting for more than 90 per cent of the total production of the selected industries.
• The all-India IIP has been released as a monthly series since 1950.
• With the inception of the Central Statistical Organisation in 1951, the responsibility for compilation and publication of IIP was vested with the same.
• To capture the changes in the structure and composition of the industry over time due to the technological changes, economic reforms and consumption patterns of the people, it is necessary to revise the IIP periodically by changing its base to a more recent period.
• The IIP series in India has been revised from time to time shifting the comparison base to a recent period, by reviewing the coverage of items and industries and by improving, as far as practicable, with a view to reflect adequately, the industrial growth and structure.
• When the index was commenced in India, the base year adopted was 1937 and this was revised successively to 1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94, 2004-05 and recently to 2011-12.
Base year revision
• The base year is a chosen year taken as a reference point (index=100) to compare production over time.
• It is important because by comparing current data with the base year, we can know whether production has increased or decreased. Thus, the base year serves as a standard reference.
• The base year should represent a relatively stable economic period and align with the base year of other macroeconomic indicators such as GDP and Wholesale Price Index (WPI).
• The base year of the IIP is revised from 2011-12 to 2022-23 under the aegis of the Technical Advisory Committee for base year revision of All India IIP (TAC-IIP).
• The Report of the TAC-IIP was released on May 25 which covered the scope and coverage, conceptual, methodological and operational issues in compilation of IIP in alignment with the international best practices.
• The IIP base year is revised to reflect structural changes in the economy, technological progress, and the growth of new industries and products. Revising the base year ensures that the index accurately represents current production patterns and provides more reliable data for economic analysis and policy-making.
• 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. In the Mining sector, the new series includes minor minerals and rare earth minerals in addition to major minerals, making the index more inclusive and representative of the sector.
• The revised basket consists of 1,042 products mapped to 463 item groups as compared to 839 items mapped to 407 item groups in the 2011-12 series. This revision better captures changes in the industrial landscape, including the emergence of new products and shifts in production patterns over time.
• A few examples are cards with a magnetic stripe (debit card, credit card), CCTV camera, articles of non-woven textiles, parts of aircraft and spacecraft, stents, vaccines (other than veterinary).
• In the new IIP series, a total of 64 item groups have been dropped. A few examples are kerosene, fluorescent tubes and CFLs, tubes for bicycle/ tricycle/ rickshaw tyres, tubes for LMV tyres, printing machinery, sewing machines.