ET Graphics | Base to basket: India's IIP gets a major makeover

The Ministry of Statistics and Programme Implementation (MoSPI) is launching a revised Index of Industrial Production (IIP) series on June 1, 2026, shifting ...

What Happened

The Ministry of Statistics and Programme Implementation (MoSPI) is launching a revised Index of Industrial Production (IIP) series on June 1, 2026, shifting the base year from 2011-12 to 2022-23.
The new series expands coverage to include minor minerals, rare earth minerals, gas supply, water supply, sewerage, and waste management — sectors absent from the previous IIP.
The item basket has been overhauled: 120 new item groups have been added (including CCTV cameras, debit/credit cards with magnetic stripes, non-veterinary vaccines, aircraft and spacecraft parts, and stents), bringing the total to 463 item groups from the earlier 407.
64 item groups deemed outdated or no longer widely produced have been removed, including kerosene, fluorescent tubes and CFLs, bicycle tyres/tubes, light motor vehicle tyres, printing machinery, and sewing machines.
The revised IIP aligns India's industrial production measurement with other key national datasets — GDP (base year 2011-12 being revised to 2022-23) and CPI — improving cross-indicator comparability.

Static Topic Bridges

Index of Industrial Production (IIP) — Purpose, Methodology, and Institutional Basis

The IIP is a composite indicator that measures the short-term performance of key industrial sectors in the Indian economy. Published monthly by MoSPI (formerly the Central Statistical Organisation/CSO), it tracks changes in the volume of production in mining, manufacturing, and electricity relative to a chosen base period. It is a quantity index — it measures volume growth, not value or price changes — and is used as a leading indicator of industrial activity for economic policy decisions.

Publishing authority: MoSPI (Ministry of Statistics and Programme Implementation), Government of India — previously the Central Statistical Organisation (CSO) before CSO was merged into MoSPI in 2019
Release frequency: monthly, with a 42-day lag (published on the 12th of each month or the preceding working day)
Three sectors covered (with weightage in the 2011-12 series): Manufacturing — 77.63%; Mining — 14.37%; Electricity — 7.99%
The IIP has been released as a monthly series since 1950; the first IIP was published by the Office of the Economic Advisor (Ministry of Commerce) with base year 1937, covering 15 industries
Methodology: follows the National Industrial Classification (NIC); uses weighted arithmetic mean of quantity relatives (Laspeyres-type index)
Base year history: 1937 → 1946 → 1951 → 1956 → 1960 → 1970 → 1980-81 → 1993-94 → 2004-05 → 2011-12 → 2022-23 (new)

Connection to this news: The shift to base year 2022-23 is a routine but significant statistical revision that recalibrates the weights of different industries to reflect the current structure of India's economy — CCTV cameras and vaccines now matter; kerosene and CFLs do not.

Base Year Revision — Why It Matters

A statistical index's base year is the reference point (index value = 100) against which subsequent periods are measured. Over time, the production structure of an economy changes — new products emerge, old ones become obsolete, and sectoral weights shift. If the base year becomes outdated, the index becomes an increasingly poor proxy for actual industrial conditions. Base year revisions update weights to reflect the current economy and bring in new items that did not exist or were not significant in the old base year.

The 2011-12 base year series captured 407 item groups; the 2022-23 series covers 463 item groups — reflecting a 14% expansion in the product basket
New sectors added: minor minerals, rare earth minerals, gas supply, water supply, sewerage, waste management — aligning IIP with India's emerging industrial and infrastructure priorities
New items added include high-technology and healthcare products: CCTV cameras, debit/credit cards, vaccines, aircraft parts, stents — reflecting India's growing manufacturing diversification under PLI (Production-Linked Incentive) schemes
Items dropped reflect industrial obsolescence: kerosene (replaced by LPG/PNG), fluorescent tubes/CFLs (replaced by LEDs), and items with declining or negligible production
The revision aligns with a broader national accounts overhaul — India's GDP base year is also being revised from 2011-12 to 2022-23

Connection to this news: The 2022-23 revision means that the IIP from June 2026 will be a structurally different measurement from what analysts have been tracking — comparisons with old IIP data will require rebasing, and sectors like rare earths will now be tracked formally for the first time.

Use-Based Classification and Eight Core Industries Index

Beyond the three-sector breakdown, IIP is also classified by use — Primary Goods, Capital Goods, Intermediate Goods, Infrastructure/Construction Goods, Consumer Durables, and Consumer Non-Durables. A related but separate index — the Index of Eight Core Industries — tracks eight infrastructure sectors (coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity) with a combined weight of 40.27% in the IIP (2011-12 base). The Eight Core Industries index is published weekly and gives an advance signal of IIP movement.

Eight Core Industries index: Coal (10.33%), Crude Oil (8.98%), Natural Gas (6.88%), Refinery Products (28.04%), Fertilisers (2.63%), Steel (17.92%), Cement (5.37%), Electricity (19.85%) — weights within the core index
Capital Goods output in IIP is a proxy for private investment trends; Consumer Durable output proxies household consumption demand
The Eight Core Industries index is released about 5 days before the IIP and predicts roughly 40% of IIP movement
IIP data is subject to two rounds of revision — provisional → first revision → final revision — over a six-month cycle

Connection to this news: The new IIP series will also revise the use-based classification weights; the inclusion of waste management and water supply signals that infrastructure output — beyond the traditional Eight Core — will be captured more comprehensively.

Key Facts & Data

New IIP series launch date: June 1, 2026
New base year: 2022-23 (replacing 2011-12)
Previous base year series: 407 item groups
New series item basket: 463 item groups (120 new added, 64 removed)
New items include: CCTV cameras, debit/credit cards, vaccines, aircraft and spacecraft parts, stents, non-woven textile articles
Removed items include: kerosene, fluorescent tubes, CFLs, bicycle tyres, light motor vehicle tyres, printing machinery, sewing machines
New sectors added: minor minerals, rare earth minerals, gas supply, water supply, sewerage, waste management
Three IIP sectors (2011-12 weights): Manufacturing 77.63%, Mining 14.37%, Electricity 7.99%
Publishing authority: MoSPI, Government of India
IIP release: monthly, 42-day lag (12th of each month)
First IIP published: 1950 (base year 1937, 15 industries)
Eight Core Industries: combined weight ~40.27% in IIP (2011-12 series)
IIP base year historical sequence: 1937, 1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94, 2004-05, 2011-12, 2022-23