India to Revamp Industrial Output Index with New Methodology and Broader Coverage
Govt proposes broad revamp of industrial output index ahead of new series

Image: Business Standard
The Indian government plans a significant overhaul of the Index of Industrial Production (IIP) to better reflect the current industrial landscape. The new series, with a base year of 2022-23, will include a wider range of sectors and adopt new methodologies, with the first release set for June 1, 2026.
- 01The proposed changes to the IIP include expanding its coverage to minor minerals, gas supply, and waste management.
- 02The base year for the IIP will be updated from 2011-12 to 2022-23 to align with other economic indicators.
- 03The new index will feature 1,042 products mapped to 463 item groups, reflecting the evolving industrial structure.
- 04A chain-linked IIP will be introduced alongside the fixed-base index to better capture structural changes.
- 05The first release of the revised IIP series is scheduled for June 1, 2026, providing data from April 2023.
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The Indian government is set to implement a comprehensive revamp of the Index of Industrial Production (IIP), aiming to better reflect the changing industrial landscape. This overhaul, recommended by the Technical Advisory Committee on Base Year Revision of the All-India Index of Industrial Production (TAC-IIP), will introduce a new series with a base year of 2022-23. Key changes include expanding the index's coverage to include sectors such as minor minerals, gas supply, and waste management. The committee has proposed a chain-linked IIP alongside the traditional fixed-base index, allowing for annual updates of weights to capture structural changes in production. The updated index will feature 1,042 products across 463 item groups, aligning with the National Industrial Classification 2025. The first release of this revised IIP series is planned for June 1, 2026, offering index values from April 2023. This significant revision is deemed essential due to advancements in technology, digitalization, and shifts in global supply chains, ensuring that the index remains relevant and accurate.
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The revamped IIP will provide a more accurate measure of industrial output, influencing economic policies and business strategies.
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