UPSC Prelims Practice Questions — India's Index of industrial production records growth of 6.7% in July 2026

Q1. In the current series of the Index of Industrial Production, the items of the index are additionally grouped by economic end-use into how many categories?

  • A. Four
  • B. Five
  • C. Six
  • D. Seven

Q2. With reference to the Index of Industrial Production, the 'use-based classification' of the index is best described as the grouping of items according to

  • A. the National Industrial Classification activity of the establishment that produces them, aggregated to two-, three- and four-digit levels
  • B. the economic end-use of the product, irrespective of the sector in which it is produced
  • C. whether the output is used within the country or is exported, with separate indices compiled for each stream
  • D. the intensity of energy used in producing them, ranging from energy-intensive to non-energy-intensive groups

Q3. Which one of the following statements about the revision of the base year of the Index of Industrial Production is correct?

  • A. The base year of the index has been revised every five years without exception since 1993-94, each revision being notified by the Reserve Bank of India
  • B. The revised series abandoned sector-wise indices altogether and now presents the entire index only under end-use heads
  • C. The new series with base year 2022-23 was released in June 2026 and widened coverage to gas and water supply activities
  • D. All weights of the revised series are derived solely from the Annual Survey of Industries, national accounts data being excluded as a matter of policy

Q4. With reference to the 2022-23 base-year series of the Index of Industrial Production, consider the following statements: 1. It retains Mining, Manufacturing and Electricity, and additionally covers Gas Supply as well as Water Supply, Sewerage and Waste Management. 2. In the mining division, coverage now extends to minor minerals and rare earth minerals in addition to major minerals. 3. The revised basket consists of 1,042 products mapped to 463 item groups, against 839 items mapped to 407 item groups in the preceding series. 4. The weighting diagram of the revised series is derived from the Economic Census, the Annual Survey of Industries having been discontinued as a weighting source. Which of the statements given above is/are correct?

  1. It retains Mining, Manufacturing and Electricity, and additionally covers Gas Supply as well as Water Supply, Sewerage and Waste Management.
  2. In the mining division, coverage now extends to minor minerals and rare earth minerals in addition to major minerals.
  3. The revised basket consists of 1,042 products mapped to 463 item groups, against 839 items mapped to 407 item groups in the preceding series.
  4. The weighting diagram of the revised series is derived from the Economic Census, the Annual Survey of Industries having been discontinued as a weighting source.
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q5. The Quick Estimates of the Index of Industrial Production, for which the release timeline has been compressed from 42 days to 28 days from the reference month, are compiled and released by

  • A. the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade
  • B. the Department of Economic Affairs in the Ministry of Finance, in its monthly economic review
  • C. the National Statistics Office in the Ministry of Statistics and Programme Implementation
  • D. the Reserve Bank of India, through the industrial output tables of its monthly Bulletin

Q6. Under the revision policy currently followed by MoSPI, how many estimates of the Index of Industrial Production are released in all for any single reference month?

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

Q7. The release reporting 6.7 per cent year-on-year growth in industrial production for July 2026 was issued by which one of the following agency-ministry combinations?

  • A. National Statistics Office — Ministry of Statistics and Programme Implementation
  • B. Office of the Economic Adviser — Ministry of Statistics and Programme Implementation
  • C. National Statistics Office — Ministry of Commerce and Industry
  • D. Office of the Economic Adviser — Ministry of Commerce and Industry

Q8. The July 2026 industrial production figure was published as a 'Quick Estimate'. In the context of the IIP, this term denotes

  • A. an estimate prepared before the reference month closes, by projecting the trend of the preceding quarter forward
  • B. a seasonally adjusted month-on-month index published in place of the year-on-year index for that month
  • C. a provisional estimate based on the data reported by source agencies up to the release date, revised once in the following month
  • D. an advance index covering only the core industries, put out ahead of the full industrial production index

Q9. Consider the following statements regarding the Index of Industrial Production and related economic indicators: 1. The Index of Core Industries is released monthly by the Office of the Economic Adviser, while the Index of Industrial Production is released monthly by the National Statistics Office. 2. The eight core industries together account for the entire weight of the manufacturing sector within the Index of Industrial Production. 3. The Index of Industrial Production tracks changes in the volume of production, whereas Gross Domestic Product estimates measure value added. 4. The Index of Industrial Production is the only official indicator of industrial activity in India, every other measure of factory output being a private survey. Which of the statements given above is/are correct?

  1. The Index of Core Industries is released monthly by the Office of the Economic Adviser, while the Index of Industrial Production is released monthly by the National Statistics Office.
  2. The eight core industries together account for the entire weight of the manufacturing sector within the Index of Industrial Production.
  3. The Index of Industrial Production tracks changes in the volume of production, whereas Gross Domestic Product estimates measure value added.
  4. The Index of Industrial Production is the only official indicator of industrial activity in India, every other measure of factory output being a private survey.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 3 and 4
  • D. 1 only

Q10. The eight core industries together account for 40.27 per cent of the weight of items included in the Index of Industrial Production. Within this group of eight, the single largest individual weight belongs to

  • A. Electricity
  • B. Petroleum Refinery Products
  • C. Steel
  • D. Coal

Q11. The Production Linked Incentive scheme for the automobile and auto components sector, cited among the drivers of manufacturing output, was approved in which year and with what approved outlay?

  • A. Approved in 2021, with an outlay of about ₹25,938 crore
  • B. Approved in 2021, with an outlay of about ₹44,326 crore
  • C. Approved in 2026, with an outlay of about ₹25,938 crore
  • D. Approved in 2020, with an outlay of about ₹1.97 lakh crore