Press note on release of the Report of the Technical Advisory Committee on Base Year Revision of the All-India Index of Industrial Production from 2011-12 to 2022-23

1. At a Glance

• The Index of Industrial Production (IIP) is India's principal high-frequency indicator of short-term industrial performance, compiled monthly by the National Statistics Office (NSO), MoSPI [S1][S5].
• MoSPI on 25 May 2026 released the report of the Technical Advisory Committee on Base Year Revision of IIP (TAC-IIP) chaired by Dr. Mridul K. Saggar (IIM Kozhikode), shifting the base from 2011-12 to 2022-23 [S1][S2].
• New series launches on 1 June 2026, aligned with the parallel re-basing of GDP (released 27 Feb 2026) and CPI (12 Feb 2026) [S6].
• Relevance for UPSC: GS-III (Indian Economy — growth, industry, statistics) and Prelims (statistical institutions, indices).

2. Why in the News

• MoSPI released the TAC-IIP Report through PIB press note on 25 May 2026, ahead of the 1 June 2026 rollout of the new IIP series with base 2022-23 [S1][S2].
• Part of a wider statistical re-basing exercise: GDP (NAS), WPI, and the proposed new Producer Price Index (PPI) also moving to base 2022-23 [S5].

3. Background & Evolution

• First IIP compiled by the Office of the Economic Adviser, Ministry of Commerce & Industry, with base year 1937, covering 15 industries (~90% of selected production) [S7].
• Released as a monthly series since 1950; compilation transferred to the Central Statistical Organisation (CSO) on its establishment in 1951 [S7].
• Successive base years: 1946 → 1951 → 1956 → 1960 → 1970 → 1980-81 → 1993-94 → 2004-05 → 2011-12 → 2022-23 [S7].
• TAC-IIP constituted September 2024 under Dr. Mridul K. Saggar; held 11 meetings; released three discussion papers on (i) factory substitution, (ii) chain-based IIP, (iii) seasonal adjustment, plus three consultative workshops [S1][S4].

4. Core Static Facts

• Compiling agency: National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) [S1].
• New base year: 2022-23 (revised from 2011-12) [S1].
• Classification framework: National Industrial Classification (NIC) 2025 [S1][S2].
• Item basket: 1,042 products mapped to 463 item groups [S1][S2].
• Manufacturing basket change: ~120 new item groups added, 64 outdated removed [S2].
• Sectoral coverage expanded to include Minor Minerals, Rare Earth Minerals, Gas Supply, Water Supply, and Sewerage & Waste Management [S1].
• Mining sub-indices (3): Fuel Minerals; Metallic Minerals (incl. Rare Earths); Non-Metallic Minerals (incl. Minor Minerals) [S1].
• Electricity sub-indices: separate indices for renewable and non-renewable generation [S1].
• Linking method: Geometric Mean method to link 2011-12 series with 2022-23 series; linking factor computed at aggregated (General Index) level [S1].
• Index formula retained: Laspeyres (with factory-substitution adjustment factor) [S4].
• Seasonal adjustment method: partial concurrent adjustment using X-12 ARIMA family on aggregate (sectoral & general) levels [S4].
• Chair: Dr. Mridul K. Saggar, Professor, IIM Kozhikode [S1][S5].

5. Multi-Dimensional Analysis

Economic - Captures structural shifts toward renewables, rare earths, and waste/water utilities, sectors absent or under-weighted in 2011-12 basket [S1][S2]. - Updated weights expected to reduce volatility from obsolete items (e.g., discontinued product lines) and better reflect post-2014 manufacturing reality (PLI, semiconductors, EVs) [S2]. - Provides synchronised base (2022-23) across GDP, WPI, CPI, IIP, PPI, improving cross-deflator consistency [S5][S6].

Scientific / Technological / Methodological - Factory substitution mechanism: closed or repurposed factories replaced by comparable units with adjustment factor; newly commissioned large-scale factories can be inducted mid-series [S1][S4]. - Discussion paper on chain-based IIP considered, addressing substitution bias of fixed-base Laspeyres [S1]. - Seasonal adjustment: X-12 ARIMA with calendar-effect handling for non-Gregorian Indian festivals [S4].

Administrative / Governance - Wide stakeholder consultation: experts, academia, State Directorates of Economics and Statistics (DESs), public domain papers, three workshops [S1]. - Improves federal data architecture by formalising DES role in factory panel maintenance [S1].

Environmental - First-time disaggregation of renewable vs non-renewable electricity in IIP enables tracking of energy transition [S1]. - Inclusion of Water Supply, Sewerage & Waste Management aligns IIP with ISIC Rev.4 / SDG-6 & SDG-12 monitoring categories [S1].

6. Recent Developments (last 12-18 months)

• September 2024: TAC-IIP constituted under Dr. Mridul K. Saggar [S1].
• 2025: Three discussion papers released (factory substitution; chain-based IIP; seasonal adjustment) [S1][S4].
• 12 Feb 2026: New CPI series (base 2022-23) released [S6].
• 27 Feb 2026: New GDP/NAS series (base 2022-23) released [S6].
• 25 May 2026: TAC-IIP Report released via PIB [S1].
• 1 June 2026: New IIP series (base 2022-23) scheduled launch [S2][S3].

7. Prelims Hooks

• IIP base year revised from 2011-12 to 2022-23; new series effective 1 June 2026 [S1][S2].
• TAC-IIP chair: Dr. Mridul K. Saggar, IIM Kozhikode; committee constituted September 2024 [S1].
• New basket: 1,042 products / 463 item groups, aligned to NIC-2025 [S1].
• IIP is compiled monthly by NSO under MoSPI — NOT by RBI or Ministry of Commerce [S1].
• First IIP base year was 1937 by Office of the Economic Adviser; monthly release since 1950 [S7].
• Series linked across base years using Geometric Mean method [S1].
• Five sectors in new series: Mining & Quarrying; Manufacturing; Electricity; Gas Supply; Water Supply, Sewerage & Waste Management (last two newly carved out) [S1].
• Rare Earth Minerals newly included under Metallic Minerals sub-index [S1].
• Electricity now split into renewable and non-renewable sub-indices [S1].
• Methodological formula remains Laspeyres; seasonal adjustment via X-12 ARIMA partial concurrent [S4].
• Parallel re-basing to 2022-23 for GDP, CPI, WPI, and new PPI [S5][S6].
• ~120 manufacturing item groups added, 64 removed [S2].

8. Mains Relevance

• GS-III: Indian Economy — growth & development; mobilisation of resources; data and statistical infrastructure.
• Syllabus heading: "Indian Economy and issues relating to planning, mobilization of resources, growth, development."
• Possible question stems: 1. "Re-basing of macroeconomic indices is a statistical necessity, not a cosmetic exercise. Discuss with reference to the recent revision of IIP base year to 2022-23." 2. "Examine how the inclusion of renewable energy, rare earth minerals, and waste management in the new IIP series reflects India's evolving industrial structure." 3. "Discuss the methodological improvements proposed by the Saggar Committee for the Index of Industrial Production."

9. Related Topics to Study Next

• National Statistical Commission (NSC) & MoSPI architecture — institutional context.
• NIC-2025 / ISIC Rev.4 — classification frameworks underpinning IIP.
• GDP base year revision to 2022-23 (Bhalla Committee context) — parallel exercise.
• CPI rebasing 2022-23 and WPI/PPI transition — sister indices.
• Use-Based Classification (UBC) of IIP — primary/intermediate/capital/consumer goods.
• Eight Core Industries (ICI) — overlapping ~40% weight in IIP manufacturing.
• Annual Survey of Industries (ASI) — sampling frame for factory panel.
• PLI scheme & National Manufacturing Mission — what the new basket is meant to capture.

10. Common Errors / Trap Areas

• IIP is compiled by NSO/MoSPI, not the RBI or Ministry of Commerce (the latter compiles WPI) [S1].
• IIP uses Laspeyres (fixed-base) formula; chain-based was discussed but base series remains Laspeyres [S4].
• The Eight Core Industries index is released by DPIIT, not MoSPI — distinct from IIP though it feeds into it.
• New series has five sectoral heads (Gas Supply and Water/Sewerage are now separate); old series effectively had three (Mining, Manufacturing, Electricity) [S1].
• TAC was chaired by Mridul Saggar (IIM Kozhikode) — not to be confused with the Bibek Debroy or Rangarajan committees on other statistics.
• Base year 2022-23, not 2021-22 or 2023-24 — chosen for synchronisation across GDP/CPI/WPI [S5].

11. Sources

• [S1] Press note on release of the Report of the TAC on Base Year Revision of IIP — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2264966 — (tier 1)
• [S2] Report of the Technical Advisory Committee on Base Year Revision (TAC-IIP Final Report PDF) — https://www.mospi.gov.in/uploads/documents/documents/1779702577643-Report_of_TAC_IIP_Final.pdf — (tier 1)
• [S3] MoSPI – Index of Industrial Production (IIP) landing page — https://www.mospi.gov.in/iip — (tier 1)
• [S4] Discussion Paper: Substitution of Factories / Seasonal Adjustment of IIP — https://www.mospi.gov.in/uploads/documents/documents/1769598039930-Discussion_Paper_Seasonal_Adjustment.pdf — (tier 1)
• [S5] MoSPI decides comprehensive revision of base year of GDP, IIP, CPI — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2225364 — (tier 1)
• [S6] Release schedule of new series of GDP, CPI and IIP — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2226269 — (tier 1)
• [S7] IIP Background / Historical base years — https://mospi.gov.in/iipbackground — (tier 1)