India to revamp IIP with new base year, wider coverage from June 1
The Ministry of Statistics and Programme Implementation (MoSPI) will release the revamped Index of Industrial Production (IIP) on June 1, 2026, shifting the ...
What Happened
- The Ministry of Statistics and Programme Implementation (MoSPI) will release the revamped Index of Industrial Production (IIP) on June 1, 2026, shifting the base year from 2011-12 to 2022-23.
- The new series expands sectoral coverage to include Water Supply, Sewerage and Waste Management alongside the existing Mining and Quarrying, Manufacturing, and Electricity sectors.
- For the first time, minor minerals and gas supply will be tracked within the IIP, aligning India's industrial statistics with the International Recommendations for the Index of Industrial Production (IRIIP, 2010).
- The revised product basket now contains 1,042 products mapped to 463 item groups, updated to reflect structural shifts in the Indian economy over the past decade.
- The Mining and Quarrying sector has been disaggregated into three sub-indices: Fuel Minerals, Metallic Minerals (including Rare Earth Minerals), and Non-Metallic Minerals (including Minor Minerals).
- Manufacturing sector indices will now be published at the 2-digit level of the National Industrial Classification (NIC-2025), providing finer industry-level breakdowns.
Static Topic Bridges
Index of Industrial Production (IIP)
The IIP is a composite indicator that measures short-term changes in the volume of production in the industrial sector of an economy. In India, it is compiled and released monthly by MoSPI, with a six-week lag from the reference month. The index uses the Laspeyres formula — a weighted average of output quantities relative to a base year — where weights are derived from Gross Value of Output (GVO) at the 5-digit NIC level and Gross Value Added (GVA) at higher aggregation levels using Annual Survey of Industries (ASI) data.
- Compiled by: MoSPI (Ministry of Statistics and Programme Implementation)
- Previous base year: 2004-05 (revised to 2011-12 in May 2017)
- New base year: 2022-23 (effective June 1, 2026)
- Release frequency: Monthly (six-week lag)
- Three broad sectors: Mining and Quarrying, Manufacturing, Electricity (now extended to include Water Supply, Sewerage and Waste Management)
- Eight Core Industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity — these have a combined weight of ~40% in IIP
Connection to this news: The June 2026 revision is the second base year update in IIP's recent history and represents the most expansive structural overhaul, adding entirely new sectors and aligning with NIC-2025 and international statistical standards.
Use-Based Classification in IIP
Alongside sector-based indices, the IIP is also presented through a Use-Based Classification that groups products by their end use in the economy. The six categories are: Primary Goods, Capital Goods, Intermediate Goods, Infrastructure/Construction Goods, Consumer Durables, and Consumer Non-Durables. This classification allows analysts to assess the nature and quality of industrial growth — for instance, rising Capital Goods output signals investment momentum, while surging Consumer Durables output indicates household demand.
- Capital Goods index is considered a leading indicator of private investment
- Consumer Durables and Non-Durables together constitute the Consumer Goods index
- Infrastructure/Construction Goods data overlaps with the Eight Core Industries index
- Use-based classification will also be updated under the new 2022-23 base series
Connection to this news: The new series will release use-based indices alongside the sector-wise ones from June 1, giving a richer picture of where industrial momentum is concentrated.
National Industrial Classification (NIC)
The NIC is India's standard system for classifying economic activities, maintained by MoSPI and aligned with the International Standard Industrial Classification (ISIC) of the United Nations. India periodically revises NIC to capture emerging economic activities and retire obsolete ones. NIC-2008 was used in the previous IIP series; the new series adopts NIC-2025.
- Latest version: NIC-2025 (adopted in the 2022-23 IIP series)
- Based on ISIC Revision 5
- Hierarchical structure: Section → Division → Group → Class → Sub-class
- Captures new-age sectors including waste management, renewable energy generation, and rare earth mineral extraction
Connection to this news: Alignment with NIC-2025 allows India's industrial statistics to be internationally comparable and enables tracking of sectors like waste management that were absent from earlier classifications.
Key Facts & Data
- New IIP base year: 2022-23 (launch date: June 1, 2026)
- Previous base year: 2011-12 (in use since May 2017)
- Revised product basket: 1,042 products across 463 item groups
- New sectors added: Water Supply, Sewerage and Waste Management; minor minerals; gas supply
- Mining sub-indices: Fuel Minerals, Metallic Minerals (incl. Rare Earth), Non-Metallic Minerals (incl. Minor Minerals)
- IIP data will cover April 2023 onwards under the new series, with Quick Estimates for April 2026 in the first release
- Separate indices for electricity generated from renewable and non-renewable sources introduced
- Technical Advisory Committee for Base Year Revision of IIP (TAC-IIP) under MoSPI recommended the 2022-23 base year