India will release the new series of the Index of Industrial Production (IIP) with 2022-23 as the base year on 1 June 2026, marking a major update to the way the country measures industrial output.
In a statement on Tuesday, 26 May, the Ministry of Statistics and Programme Implementation (MoSPI) said the base year of the All India IIP is being revised from 2011-12 to 2022-23.
The new series has been prepared under the Technical Advisory Committee for base year revision of All India IIP (TAC-IIP).
The IIP, compiled and released by the National Statistics Office (NSO) under MoSPI, measures changes in the volume of industrial production over time against a fixed base year.
According to the ministry, the new series has been designed to better reflect structural changes in the economy, technological progress and the emergence of new industries and products.
The new IIP series will cover 463 item groups, compared with 407 item groups in the current 2011-12 series.
The updated basket includes 120 new item groups, while 64 item groups have been dropped.
Some of the new item groups include cards with magnetic stripe such as debit and credit cards, CCTV cameras, articles of non-woven textiles, parts of aircraft and spacecraft, stents and vaccines other than veterinary vaccines.
The revised series will retain the existing broad sectors of mining, manufacturing and electricity, but will expand coverage to include gas supply, water supply, sewerage and waste management activities.
In the mining sector, the new series will include minor minerals and rare earth minerals along with major minerals, making the index more comprehensive.
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The new series will also provide more detailed indices by separately covering generation of electricity through renewable and non-renewable sources, gas supply, fuel minerals, metallic minerals, non-metallic minerals, water supply, sewerage and waste management.
For manufacturing, the item basket has been selected using Annual Survey of Industries (ASI) data for 2021-22 and 2022-23.
MoSPI said the methodology is aimed at ensuring that the basket remains representative of the current industrial structure.
The ministry said the IIP will continue to be released every month with a time lag of 28 days from the reference month.
A linking factor will also be released at the time of launching the new series to connect the previous 2011-12 series with the new 2022-23 series at the sectoral level.
The six use-based categories of the existing IIP series will continue in the new series.
These include primary goods, capital goods, intermediate goods, infrastructure and construction goods, consumer durable goods and consumer non-durable goods.
MoSPI said the latest version of the National Industrial Classification (NIC), NIC 2025, will be used to disseminate the index in the new series at the NIC 2-digit level.
The revision is the 10th base year revision of the All India IIP.
The first IIP was prepared with 1937 as the base year, after which the base year was revised successively to 1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94, 2004-05 and 2011-12.
The change is significant because IIP is one of the key indicators used to understand industrial activity, production trends and the direction of economic growth.
A more updated base year and wider item basket are expected to give a clearer picture of India’s present industrial economy.
