India Unveils New Index of Industrial Production (IIP) Series with 2022-23 Base Year

 Why in News?

India’s industrial output, measured by the Index of Industrial Production (IIP), grew by 4.9% year-on-year in April 2026, according to the first official release of the revised IIP series with base year 2022-23. The new series was launched by the Ministry of Statistics and Programme Implementation (MoSPI), replacing the earlier 2011-12 base year series.

What is the Index of Industrial Production (IIP)?

• IIP is a composite indicator that measures changes in the volume of industrial production over time.
• It serves as a key indicator of industrial sector performance and overall economic activity.
• It is compiled and released monthly by the National Statistics Office (NSO) under MoSPI.

Key Highlights of the Revised IIP Series (Base Year 2022-23)

1. Expanded Sectoral Coverage: For the first time, IIP includes Gas Supply, Water Supply, Sewerage Activities, Waste Management Services. Earlier, the index covered only: Mining, Manufacturing and Electricity. 

2. Manufacturing Remains the Largest Component

• Manufacturing accounts for 76.06% of the total index weight.
• It recorded 6.2% growth in April 2026.
• It was the principal driver of overall industrial growth.

3. Greater Sectoral Granularity: Mining sector is now separately classified into:

• Fuel minerals
• Metallic minerals (including rare earth minerals)
• Non-metallic minerals (including minor minerals)

The electricity sector is now separately tracked for renewable energy generation and non-renewable energy generation.

4. Expanded Product Basket:

Previous Series (2011-12)	Revised Series (2022-23)
839 products	1,042 products
407 item groups	463 item groups

New Products Added

• CCTV cameras
• Aircraft and spacecraft parts
• Non-woven textile products
• Stents
• Vaccines

Obsolete Products Removed

• Kerosene
• Fluorescent tubes
• Compact Fluorescent Lamps (CFLs)

5. Improved Data Collection

• Item groups reported in value terms increased from 109 to 234.
• Enhances representativeness and quality of industrial statistics.

6. Updated Weight Structure

• Weights have been revised using:
  • Gross Value Added (GVA) estimates from National Accounts Statistics (NAS) 2022-23.
  • Data from the Annual Survey of Industries (ASI) 2022-23.

Source: DD