UPSC Prelims Practice Questions — Release of Discussion Paper 2.0: Adoption of Chain-Based Index of Industrial Production (IIP)

Q1. With reference to Discussion Paper 2.0 released in January 2026 proposing the adoption of a chain-based Index of Industrial Production (IIP), which one of the following statements is correct?

  • A. It was released by the Ministry of Statistics and Programme Implementation (MoSPI), inviting stakeholder comments by 25 January 2026.
  • B. It was released by the Reserve Bank of India along with its bi-monthly monetary policy statement.
  • C. It was released by the Ministry of Commerce and Industry, which is the compiling agency for the IIP.
  • D. It was released by NITI Aayog as part of its statutory base-revision mandate.

Q2. The Index of Industrial Production (IIP), whose shift to a chain-based framework is proposed in Discussion Paper 2.0, is compiled and released by which one of the following?

  • A. National Statistical Office (NSO)
  • B. Directorate General of Commercial Intelligence and Statistics (DGCIS)
  • C. Reserve Bank of India
  • D. Office of the Economic Adviser, Ministry of Commerce and Industry

Q3. Proposals on whether the IIP should move from a fixed-base Laspeyres index to a chain-based methodology are technically examined by a specialised committee constituted for the IIP. This body is best described as the:

  • A. Technical Advisory Committee on IIP (TAC-IIP)
  • B. Monetary Policy Committee (MPC)
  • C. Financial Stability and Development Council (FSDC)
  • D. Sixteenth Finance Commission

Q4. With reference to the distinction between a fixed-base Laspeyres index and a chain-based index for the IIP, consider the following: 1. In a fixed-base Laspeyres index, the weights remain frozen until the next base-year revision. 2. In a chain-based index, the item basket and weights are updated annually. 3. A chain-based index compares current production against a distant fixed reference base year rather than the immediately preceding year. 4. The IIP is currently compiled using a fixed-base methodology. Which of the above is/are correctly identified?

  1. In a fixed-base Laspeyres index, the weights remain frozen until the next base-year revision.
  2. In a chain-based index, the item basket and weights are updated annually.
  3. A chain-based index compares current production against a distant fixed reference base year rather than the immediately preceding year.
  4. The IIP is currently compiled using a fixed-base methodology.
  • A. 1 and 2 only
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q5. The successive revisions of the base year of the Index of Industrial Production, from 1937 up to the current series, have been carried out by which one of the following?

  • A. The Central Statistical Organisation / National Statistical Office under MoSPI
  • B. The Office of the Economic Adviser under the Ministry of Finance
  • C. The Reserve Bank of India
  • D. The erstwhile Planning Commission

Q6. Consider the following statements comparing IIP series across base years: 1. The current base-revision exercise shifts the IIP base year from 2011-12 to 2022-23. 2. The 2011-12 series was the first-ever IIP series compiled in India. 3. Every base-year revision of the IIP has always retained exactly the same set of item groups. Which of the statements given above is/are correct?

  1. The current base-revision exercise shifts the IIP base year from 2011-12 to 2022-23.
  2. The 2011-12 series was the first-ever IIP series compiled in India.
  3. Every base-year revision of the IIP has always retained exactly the same set of item groups.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Consider the following statements comparing the old (2011-12) and new (2022-23) IIP series: 1. The old IIP series covered the Mining, Manufacturing and Electricity sectors. 2. The new IIP series additionally includes Gas Supply and Water Supply, Sewerage & Waste Management activities. 3. Under the use-based classification, the new IIP replaces all goods categories with a single 'Consumer Services' category. Which of the statements given above is/are correct?

  1. The old IIP series covered the Mining, Manufacturing and Electricity sectors.
  2. The new IIP series additionally includes Gas Supply and Water Supply, Sewerage & Waste Management activities.
  3. Under the use-based classification, the new IIP replaces all goods categories with a single 'Consumer Services' category.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. The National Statistical Office (NSO), which compiles the Index of Industrial Production, functions under which one of the following ministries?

  • A. Ministry of Statistics and Programme Implementation
  • B. Ministry of Commerce and Industry
  • C. Ministry of Finance
  • D. Ministry of Corporate Affairs

Q9. The first-ever Index of Industrial Production in India (with base year 1937) was compiled by which one of the following?

  • A. Office of the Economic Adviser, Ministry of Commerce and Industry
  • B. Central Statistical Organisation
  • C. National Statistical Office
  • D. Reserve Bank of India

Q10. The base-revision exercise for which MoSPI held simultaneous pre-release consultative workshops (at Mumbai, New Delhi and Chennai) covered how many macroeconomic indices?

  • A. Two
  • B. Three
  • C. Four
  • D. Five