India Revamps Index of Industrial Production: Key Changes Explained
Knowledge Nugget | India unveils modernized Index of Industrial Production : 5 key changes that matter

Image: The Indian Express
India's Ministry of Statistics and Programme Implementation has modernized the Index of Industrial Production (IIP), revising its base year to 2022-23 and expanding its scope. This update aims to better reflect current industrial dynamics, with significant changes in item coverage and weights.
- 01The base year for the IIP has been updated from 2011-12 to 2022-23 to enhance its relevance.
- 02The new IIP includes a broader scope by adding sectors like Gas Supply and Waste Management.
- 03The item basket has expanded to 1,042 products, up from 839, with updated weights reflecting the latest economic data.
- 04The IIP now provides greater granularity, offering separate indices for renewable and non-renewable electricity generation.
- 05The Consumer Price Index (CPI) has also been revised, with its base year changing to 2024, now including rural house rent for the first time.
Advertisement
In-Article Ad
India's Ministry of Statistics and Programme Implementation (MoSPI) has unveiled a modernized Index of Industrial Production (IIP), marking a significant overhaul aimed at better reflecting the current industrial landscape. The base year has been updated from 2011-12 to 2022-23, aligning the index with contemporary economic realities. This new series broadens the scope by incorporating sectors such as Gas Supply and Water Supply, while the item basket has expanded to 1,042 products from 839, ensuring more relevant commodities are included. The weights assigned to these items have also been updated based on the latest Gross Value Added data. Furthermore, the new IIP offers enhanced granularity, providing separate indices for electricity generation from both renewable and non-renewable sources. Alongside the IIP changes, the CPI has been revamped with a new base year of 2024, which now includes rural house rent for the first time, reflecting updated consumption patterns. These revisions are part of MoSPI's broader initiative to modernize India's statistical framework.
Advertisement
In-Article Ad
The modernization of the IIP and CPI will provide more accurate economic indicators, influencing policy decisions and economic planning.
Advertisement
In-Article Ad
Reader Poll
How do you feel about the changes in India's Index of Industrial Production?
Connecting to poll...
More about Ministry of Statistics and Programme Implementation

India Achieves 7.7% Economic Growth in FY26, Leading Globally
Asianet Newsable • Jun 6, 2026

India's FY26 Debt-to-GDP Ratio Exceeds Estimates Amid Lower Nominal GDP Growth
Business Standard • Jun 5, 2026

India's Industrial Output Sees 4.9% Growth in April 2026 with New IIP Series
Asianet Newsable • Jun 1, 2026
Read the original article
Visit the source for the complete story.




