The new series of the Index of Industrial Production (IIP) is set to substantially expand the coverage by incorporating minor and rare earth minerals, gas supply, water supply, sewerage, and waste management sectors, according to the Ministry of Statistics and Programme Implementation (MoSPI).
The statistics ministry will release the revised IIP with 2022-23 as the new base year, replacing the earlier 2011-12 series, on June 1. This marks the third major high-frequency economic indicator to undergo a base year revision after GDP and the Consumer Price Index, aiming to present a more accurate and contemporary picture of India’s industrial performance.
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In a major overhaul, the item basket and weights have been comprehensively revised by adding relevant commodities and removing outdated ones. The updated basket now consists of 1,042 products mapped to 463 item groups. The revised IIP is aligned with the National Industrial Classification (NIC-2025), ensuring greater consistency with other official statistical systems.
Granular Sub-Indices
The updated series introduces enhanced granularity with new sub-indices. Electricity now has separate indices for generation from renewable and non-renewable sources. The Mining and Quarrying sector has been divided into three sub-indices covering Fuel Minerals, Metallic Minerals (including Rare Earth Minerals), and Non-Metallic Minerals (including Minor Minerals).
Methodological Overhauls
Methodological improvements have also been implemented, the MoSPI said. Factories that are permanently closed or have significantly changed their production lines will be replaced with comparable units. The panel of factories will be strengthened by including newly commissioned large-scale units that begin production during the life of the series.
For linking the old 2011-12 series with the new 2022-23 series, the Geometric Mean method will be used, with linking factors calculated at the level of the General Index and Sectoral Indices.
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On the price deflator front, the Technical Advisory Committee on IIP has recommended using the Output Producer Price Index (PPI) as the preferred deflator once it becomes available. Until then, the Wholesale Price Index (WPI) will continue as an interim measure.
The first release of the new series will provide index numbers from April 2023 onwards, including the quick estimate for April 2026. Along with the All-India General Index, the release will include sector-wise indices for Mining and Quarrying, Manufacturing, Electricity & Gas Supply, and Water Supply, Sewerage & Waste Management.
TOPICSIIPIIP GrowthThis article was first uploaded on May twenty-six, twenty twenty-six, at eighteen minutes past one in the night.