{"id":75837,"date":"2026-06-04T18:06:31","date_gmt":"2026-06-04T12:36:31","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=75837"},"modified":"2026-06-04T18:11:24","modified_gmt":"2026-06-04T12:41:24","slug":"new-iip-series","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/04-06-2026\/new-iip-series","title":{"rendered":"New IIP Series Reflecting India&#8217;s Changing Industrial Structure"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Ministry of Statistics and Programme Implementation (MoSPI) has launched a revised All India <strong>Index of Industrial Production (IIP)<\/strong> series with <strong>2022\u201323<\/strong> as the base year, replacing the earlier <strong>2011\u201312 series.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>The first release<\/strong> under the new series showed India&#8217;s industrial production growing by <strong>4.9%<\/strong> in April 2026, led by strong manufacturing activity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Revising the Base Year<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The IIP is a key <strong>short-term indicator<\/strong> of industrial activity, used by the government, RBI, and researchers for policymaking, forecasting, and national accounts.<\/li>\n\n\n\n<li>The last IIP base year revision was 2011\u201312 and since then, major <strong>technological changes, product diversification, and digitalization<\/strong> have reshaped industrial production.\n<ul class=\"wp-block-list\">\n<li>India\u2019s economic structure has transformed: services contribute <strong>62.5% of GVA, <\/strong>agriculture <strong>15%<\/strong>, and industry <strong>22%<\/strong>, indicating scope for growth.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>MoSPI\u2019s Technical Advisory Committee for Base Year Revision of IIP (TAC\u2013IIP)<\/strong> has recommended aligning the IIP base year with <strong>2022\u201323<\/strong>, to capture these structural and technological shifts.<\/li>\n\n\n\n<li><strong>The United Nations<\/strong> has recommended that the base period of the index number should be revised<strong> quinquennially (every five years).<\/strong><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Index of Industrial Production (IIP)<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Index of Industrial Production (IIP) <strong>measures the changes in the volume of production<\/strong> across various industrial sectors of the economy.\n<ul class=\"wp-block-list\">\n<li>The index serves as an important indicator of industrial performance and overall economic activity.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Released by:<\/strong> <strong>National Statistical Office (NSO)<\/strong>, Ministry of Statistics and Programme Implementation.<\/li>\n\n\n\n<li><strong>Periodicity:<\/strong> Monthly basis<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Features of the Revised IIP Series<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Expanded Sectoral Coverage: <\/strong>For the first time, the IIP has expanded beyond the traditional sectors of mining, manufacturing and electricity to include<strong> Gas Supply as well as Water Supply, Sewerage and Waste Management activities.<\/strong><\/li>\n\n\n\n<li><strong>Updated Product Basket:<\/strong> The new series covers 1,042 products grouped into 463 item groups, compared with <strong>839 products<\/strong> and 407 item groups in the previous series.\n<ul class=\"wp-block-list\">\n<li><strong>New-age products<\/strong> such as CCTV cameras, aircraft and spacecraft parts, non-woven textile products, stents and vaccines have been added.\u00a0<\/li>\n\n\n\n<li><strong>Obsolete items<\/strong> including kerosene, fluorescent tubes and compact fluorescent lamps (CFLs) have been removed.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Revised Sectoral Classification: Mining data<\/strong> are now separately compiled for <strong>fuel minerals, metallic minerals including rare earth minerals, and non-metallic minerals<\/strong> including minor minerals.\n<ul class=\"wp-block-list\">\n<li>Similarly, electricity generation is now tracked separately for renewable and non-renewable sources.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Weights used in the revised index<\/strong> have been updated using Gross Value Added estimates from the <strong>National Accounts Statistics and the Annual Survey of Industries for 2022-23<\/strong>.\n<ul class=\"wp-block-list\">\n<li><strong>Electricity weights<\/strong> are based on revenue shares of renewable and non-renewable sources, while mining weights reflect the contribution of individual minerals to sectoral GVA.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The new IIP series also incorporates the <strong>National Industrial Classification (NIC) 2025 <\/strong>and includes provisions for replacing factories that have become <strong>non-operational during the life<\/strong> of the series to maintain representativeness.<\/li>\n\n\n\n<li><strong>MoSPI released linking factors<\/strong> to facilitate comparison between the old and new series at the aggregate level.\n<ul class=\"wp-block-list\">\n<li><strong>The linking factors<\/strong> are 1.1890 for Mining and Quarrying, 1.3700 for Manufacturing, 1.8495 for Electricity and 1.3834 for the General Index.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strengthened Data Collection Framework:<\/strong> Four new data source agencies have been added to improve data coverage and accuracy.\n<ul class=\"wp-block-list\">\n<li>These include <strong>IREL<\/strong> (India) Limited for rare earth minerals, <strong>State Directorates of Economics and Statistics for minor minerals<\/strong>, the <strong>Ministry of Housing and Urban Affairs<\/strong>, and the <strong>Department of Drinking Water and Sanitation.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The new IIP series also incorporates the <strong>National Industrial Classification (NIC) 2025<\/strong> and includes provisions for replacing factories that have become non-operational during the life of the series to maintain representativeness.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of the Revised IIP Series<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The inclusion of new sectors and products improves the <strong>comprehensiveness of industrial measurement.<\/strong><\/li>\n\n\n\n<li>The revised methodology enhances the<strong> reliability and quality <\/strong>of industrial statistics.<\/li>\n\n\n\n<li>The updated product basket <strong>captures technological advancements<\/strong> and emerging industries.<\/li>\n\n\n\n<li>The revised series aligns India&#8217;s industrial statistics more closely with <strong>international best practices.<\/strong><\/li>\n\n\n\n<li>The improved measurement of capital goods provides a <strong>better assessment of investment trends in the economy.<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Concluding remarks<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The new IIP series provides a more representative, reliable and methodologically robust measure of industrial growth, reflecting changes in India\u2019s economic structure and industrial landscape.<\/li>\n\n\n\n<li>It also captures emerging sectors, technological advancements, and evolving production patterns more effectively, thereby strengthening the evidence base for economic policymaking and industrial planning.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/ddnews.gov.in\/en\/industrial-production-grows-4-9-in-april-as-india-unveils-new-iip-series-with-2022-23-base-year\/\" target=\"_blank\" rel=\"noopener\"><strong>DD News<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Ministry of Statistics and Programme Implementation (MoSPI) has launched a revised All India Index of Industrial Production (IIP) series with 2022\u201323 as the base year, replacing the earlier 2011\u201312 series.\u00a0 <\/li>\n<p><\/p>\n<p><strong> Need for Revising the Base Year <\/strong><\/p>\n<li class=\"ms-5\"> The IIP is a key short-term indicator of industrial activity, used by the government, RBI, and researchers for policymaking, forecasting, and national accounts. <\/li>\n<li class=\"ms-5\"> The last IIP base year revision was 2011\u201312 and since then, major technological changes, product diversification, and digitalization have reshaped industrial production. 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