FIRST PRESS RELEASE OF ALL INDIA INDEX OF INDUSTRIAL PRODUCTION OF NEW SERIES WITH BASE YEAR 2022-23

1. At a Glance

• The All-India Index of Industrial Production (IIP) is a short-term composite indicator measuring the volume of industrial output; MoSPI has rebased it from 2011-12 → 2022-23, the 9th base revision in the series' history [S1][S2].
• New series released on 1 June 2026 along with April 2026 IIP at 4.9% growth (Manufacturing 6.2%) — the first headline print on the new base [S1].
• Relevant for Prelims (statistical indicators, ministries) and GS-III (Indian Economy — industrial growth, data infrastructure).

2. Why in the News

• 1 June 2026: MoSPI's National Statistics Office (NSO) released the first IIP press release on the new 2022-23 base, replacing the 2011-12 series [S1][S2].
• The release follows the Technical Advisory Committee (TAC-IIP) report put out on the MoSPI portal in May 2026 [S2][S3].
• Part of a wider statistical overhaul: new GDP series (base 2022-23) released 27 Feb 2026; new CPI series 12 Feb 2026 [S4].

3. Background & Evolution

• IIP first compiled in 1950 with base 1937; subsequent bases: 1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94, 2004-05, 2011-12, 2022-23 [S2].
• Base revisions periodically undertaken to reflect structural change in industry, drop obsolete items, add new ones, and align with latest National Industrial Classification (NIC) and Annual Survey of Industries (ASI) frames [S2][S3].
• Predecessor base 2011-12 had Manufacturing weight 77.6%, Mining 14.4%, Electricity ~8% — criticised for under-representing services-linked manufacturing and renewables [S5].

4. Core Static Facts

• Indicator: Volume index of industrial output, monthly, released with ~6-week lag by NSO [S2].
• Parent Ministry: Ministry of Statistics & Programme Implementation (MoSPI); compiled by National Statistics Office (NSO) [S1].
• New Base Year: 2022-23 (replacing 2011-12) [S1].
• Sectoral Weights (new series) [S5]:
• Manufacturing ≈ 79% (up from 77.6%)
• Electricity ≈ 11.5% (up from ~8%)
• Mining ≈ ~11% (down from 14.4%)
• Methodology: Move toward chain-based index with annual weight adjustments (vs fixed-weight Laspeyres earlier) [S5].
• Data Sources: Manufacturing item basket selected from ASI 2021-22 and ASI 2022-23; weights from Gross Value of Output (GVO) at 4-digit NIC level [S3].
• Expanded Coverage: Renewable vs non-renewable electricity, gas supply, water supply, sewerage & waste management, fuel/metallic/non-metallic minerals — more granular indices [S5].
• Use-Based Classification retained: Primary, Capital, Intermediate, Infrastructure/Construction, Consumer Durables, Consumer Non-Durables [S2].
• Oversight: Technical Advisory Committee (TAC) on Base Year Revision of IIP under MoSPI; TAC report published May 2026 [S2][S3].

5. Multi-Dimensional Analysis

Economic - A current base reduces drift between volume index and actual output structure, improving the IIP's signalling value for monetary policy (RBI MPC) and fiscal forecasting [S1][S5]. - Higher Electricity weight better captures renewable capacity addition under India's energy transition [S5]. - April 2026 print of 4.9% (Manufacturing 6.2%) signals manufacturing-led momentum on the new base [S1].

Scientific / Technological - Inclusion of renewables, waste management, sewerage aligns IIP with SDG-linked sectors and modern production technology [S5]. - Chain-linking is the international best practice followed by OECD statistical agencies [S3].

Administrative / Governance - Data flows from 14 source agencies (Min. of Coal, CEA, DPIIT, etc.) — coordination challenge [S2]. - Highlights India's statistical infrastructure reform: synchronised rebasing of GDP, CPI, IIP to 2022-23 [S4].

Historical - 10th base year in series since 1950; gap of 11 years since 2011-12 — same lag as earlier revisions, but criticised as too long for a fast-changing economy [S2][S5].

6. Recent Developments (last 12-18 months)

• 12 Feb 2026: New CPI series with base 2022-23 released [S4].
• 27 Feb 2026: New GDP series with base 2022-23 released [S4].
• May 2026: TAC-IIP final report published on MoSPI website [S3].
• 1 June 2026: First press release of IIP new series (Base 2022-23) with April 2026 data — headline 4.9% growth [S1].

7. Prelims Hooks

• IIP is released by NSO under MoSPI — not RBI, not CSO (CSO was merged into NSO in 2019) [S1].
• New base year 2022-23; old base 2011-12 [S1].
• Manufacturing weight ≈ 79%, Electricity ≈ 11.5%, Mining ≈ 11% in new series [S5].
• Item basket for manufacturing drawn from Annual Survey of Industries (ASI) [S3].
• Industries classified per National Industrial Classification (NIC) at 4-digit level [S3].
• New series uses chain-linking with annual weight updates [S5].
• Use-based classification has 6 categories: Primary, Capital, Intermediate, Infrastructure/Construction, Consumer Durables, Consumer Non-Durables [S2].
• IIP is released with a lag of about 6 weeks [S2].
• April 2026 IIP growth on new base = 4.9%; Manufacturing = 6.2% [S1].
• Oversight body: Technical Advisory Committee (TAC) on Base Year Revision of IIP [S2][S3].
• New series adds granular indices for renewables, water supply, sewerage, waste management [S5].
• GDP, CPI, IIP all rebased to 2022-23 in 2026 [S4].

8. Mains Relevance

• GS-III: Indian Economy — Growth, Industrial Policy, Statistical Systems.
• Syllabus heading: "Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment" and "Effects of liberalization on the economy, changes in industrial policy".
• Plausible questions: 1. "Updating the base year of macro indicators is a statistical necessity as well as a policy imperative. Discuss in the context of the recent rebasing of IIP, CPI and GDP to 2022-23." 2. "Examine how the revised IIP series with base 2022-23 better captures the structural shifts in India's industrial economy, including energy transition." 3. "Critically assess India's official statistical system in light of recent base-year revisions and the role of MoSPI's National Statistics Office."

9. Related Topics to Study Next

• CPI new series 2022-23 — companion price index, same rebasing exercise.
• GDP new series 2022-23 — output measure; methodology overlap.
• Annual Survey of Industries (ASI) — primary frame for IIP manufacturing basket.
• National Industrial Classification (NIC) — classification backbone.
• Eight Core Industries Index (ICI) — DPIIT-released, accounts for ~40% of IIP weight.
• PLI Schemes & PMI — complementary industrial activity gauges.
• NSO / MoSPI structure — post-2019 merger of CSO + NSSO.
• RBI Monetary Policy framework — primary consumer of IIP data.

10. Common Errors / Trap Areas

• Wrong ministry: IIP is MoSPI/NSO, not RBI and not Ministry of Commerce & Industry.
• CSO vs NSO: CSO was subsumed into NSO in 2019; current releases are by NSO.
• Eight Core Industries ≠ IIP: ICI is released by DPIIT (Min. of Commerce & Industry), is a subset (~40.27% weight) feeding into IIP.
• Base year mix-up: New base is 2022-23, not 2021-22 or 2023-24.
• Sector weight error: Manufacturing is largest (~79%), not Mining; Mining now < Electricity in the new series.

11. Sources

• [S1] First Press Release of All India IIP New Series Base 2022-23 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2267531 — (tier: 1)
• [S2] Index of Industrial Production (IIP) — MoSPI portal — https://www.mospi.gov.in/iip — (tier: 1)
• [S3] Report of the Technical Advisory Committee on Base Year Revision of IIP — https://www.mospi.gov.in/uploads/documents/documents/1779702577643-Report_of_TAC_IIP_Final.pdf — (tier: 1)
• [S4] Release Schedule of New Series of GDP, CPI and IIP — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2226269 — (tier: 1)
• [S5] Main Recommendations of TAC on All-India IIP — https://www.mospi.gov.in/main-recommendations-tac-all-india-iip — (tier: 1)