UPSC Prelims Practice Questions — QUICK ESTIMATE OF INDEX OF INDUSTRIAL PRODUCTION AND USE-BASED INDEX FOR THE MONTH OF FEBRUARY 2026 (BASE 2011-12=100)

Q1. The all-India Index of Industrial Production is compiled as a fixed-base index using which one of the following index-number formulae?

• A. Laspeyres' formula
• B. Paasche's formula
• C. Fisher's ideal formula
• D. Marshall-Edgeworth formula

Q2. In the current IIP series (base 2011-12), the items are clubbed into how many item groups across the three sectors taken together?

• A. 407
• B. 405
• C. 397
• D. 682

Q3. In the IIP (base 2011-12), what is the weight assigned to the Manufacturing sector?

• A. 77.63 percent
• B. 75.53 percent
• C. 14.37 percent
• D. 7.99 percent

Q4. In the use-based classification of the IIP, which category was specially created to classify finished goods used primarily as inputs in the infrastructure or construction industry that could not be placed under consumer durables or intermediate goods?

• A. Infrastructure/Construction Goods
• B. Intermediate Goods
• C. Capital Goods
• D. Primary Goods

Q5. Which of the following are correctly identified as use-based categories of the IIP (base 2011-12)?

1. Primary Goods
2. Capital Goods
3. Export-Oriented Goods
4. Consumer Non-Durable Goods

• A. 1, 2 and 4
• B. 1 and 2 only
• C. 2, 3 and 4
• D. 1, 3 and 4

Q6. In the Quick Estimate of IIP for February 2026, how many of the 23 NIC 2-digit manufacturing industry groups recorded positive year-on-year growth?

• A. 14
• B. 12
• C. 18
• D. 23

Q7. With reference to the Quick Estimate of IIP for February 2026, consider the following statements on year-on-year growth. Which of the above is/are NOT correct?

1. Overall IIP grew by 5.2 percent.
2. Manufacturing grew by 6.0 percent.
3. Mining grew by 3.1 percent.
4. Electricity grew by 4.3 percent.

• A. 1 and 2
• B. 3 only
• C. 1 and 4
• D. 4 only

Q8. With reference to the role and nature of the IIP in macroeconomic policy, consider the following statements. Which of the above is/are NOT correct?

1. It is a high-frequency indicator used as an input in the estimation of Gross Value Added (GVA)/GDP.
2. It is one of the indicators considered by the Reserve Bank's Monetary Policy Committee in assessing industrial activity.
3. It is a volume index that measures changes in real output and does not directly measure price changes.
4. Being a comprehensive index, it is the sole and exclusive basis on which the Monetary Policy Committee fixes the policy repo rate.

• A. 1 and 2
• B. 4 only
• C. 3 and 4
• D. 2 only

Q9. For the purpose of macroeconomic analysis, the Index of Industrial Production is best described as which one of the following?

• A. A volume index measuring changes in the real output of industry
• B. A value index measuring changes in the nominal turnover of industry
• C. A price index measuring changes in wholesale prices of industrial goods
• D. A composite index measuring changes in industrial employment

Q10. Regarding the historical evolution of the IIP, which of the following statements are correctly identified?

1. The base year of the IIP was revised from 2004-05 to 2011-12 in the year 2017.
2. The current series classifies industrial output under the National Industrial Classification (NIC) 2008.
3. The base-year revision to 2011-12 raised the number of broad sectors from three to six.
4. The IIP was first compiled in India in the 1950s.

• A. 1, 2 and 4
• B. 1 and 3
• C. 2, 3 and 4
• D. 1, 2 and 3

Q11. With reference to the Quick Estimate and revision cycle of the IIP, which of the following statements are correctly identified?

1. The Quick Estimate is normally released on the 28th of every month (or the next working day).
2. Along with each month's Quick Estimate, the previous month's index undergoes its first revision.
3. The index for the month two months prior undergoes final revision in the same release.
4. Once released, a Quick Estimate is treated as final and is never revised thereafter.

• A. 1, 2 and 3
• B. 1 and 4
• C. 2 and 3 only
• D. 1, 3 and 4