UPSC Prelims Practice Questions — Quick Estimates of Index of Industrial Production and Use- Based Index for the Month of September 2026 (Base 2022-23=100)

Q1. With reference to the ways in which the Index of Industrial Production (IIP) in India is classified, consider the following statements: Which of the statements given above are correct?

  1. The sectoral classification groups output by the industry of origin, following the National Industrial Classification.
  2. A sustained rise in the capital goods index is generally read as a signal of stronger investment demand in the economy.
  3. Intermediate goods in the use-based classification are machinery and equipment that are used repeatedly over many production cycles.
  4. Consumer durables differ from consumer non-durables in that they provide services to households over a long period instead of being used up quickly.
  • A. 2, 3 and 4 only
  • B. 1, 2, 3 and 4
  • C. 1 and 3 only
  • D. 1, 2 and 4 only

Q2. Consider the following facts from the IIP release for September 2026: the general index grew 6.7% year-on-year; consumer durables grew 6.0% and consumer non-durables 1.4%; and intermediate, primary and capital goods were the top contributors to growth under the use-based classification. Which of the following inferences can be drawn from the above?

  1. Output of goods that households use up quickly grew more slowly than output of long-lasting household goods.
  2. Output of consumer durables grew faster than industrial output as a whole.
  3. Goods meant for household consumption were not the main source of industrial growth in the month.
  4. Household incomes in rural areas declined during September 2026.
  • A. 1, 3 and 4 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 2 and 4 only

Q3. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. In compiling the Index of Industrial Production, item groups whose output is reported in value terms are first deflated by a price index.
  2. The Index of Industrial Production is designed to measure changes in the volume of industrial production rather than in its value.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q4. Consider the following assertion: The IIP series with base 2022-23 represents the present structure of Indian industry better than the series with base 2011-12. Which of the statements given below support/supports the above assertion?

  1. The weights of the new series are derived from national-accounts GVA and Annual Survey of Industries data for 2022-23.
  2. Gas supply and water supply, sewerage and waste management have been brought within the coverage of the index.
  3. Quick Estimates of the new series are revised once a larger share of reporting units has furnished data.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 2 and 3
  • D. 1 and 3 only

Q5. With reference to Quick Estimates of the IIP and their revision, consider the following statements: Which of the statements given above is/are correct?

  1. In a weighted response rate, non-response by units in heavily weighted item groups lowers the rate more than non-response by units in lightly weighted groups.
  2. The final figure for a month can be published in a later month's release, alongside the quick estimate for a more recent month.
  3. Revision of a quick estimate can change the headline growth rate already reported for that month.
  • A. 1 only
  • B. 1, 2 and 3
  • C. 1 and 2 only
  • D. 2 and 3 only