Index of Industrial Production
In one line: The IIP is a monthly index of the volume of industrial production in India, compiled and released by the National Statistics Office (NSO) of MoSPI.
How it works
The IIP compares output in a month with output in the base year, set at 100. Growth is usually reported year-on-year, against the same month of the previous year, to remove seasonal effects such as the monsoon. The index is presented by sector (mining, manufacturing, electricity, and in the new series water supply and waste management) and by use-based category. Manufacturing carries the heaviest weight; in the old 2011-12 series its weight was 77.63%.
Related index
The Index of Eight Core Industries (coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity) is compiled by the Office of the Economic Adviser in DPIIT and is watched as an early signal for the IIP.
Why it is in the news
August 2026 showed 8% growth, and July was revised up to 7.4%. First estimates are revised as more factories report.
Where to go next
- IIP base year revision and the Output PPI
- Use-based classification
Index of Industrial Production in the news
- Core sector grows 7.9% in September 2026, fastest since the new series began 22 October 2026
The wider index of factory, mining and power output that the core sector feeds into.
- Industrial output grows 8% in August 2026, but consumer non-durables lag at 2.1% 29 September 2026
What the monthly index measures and who compiles it.
Previous-year questions on this
- 2023 · GS3 · 10 marks Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.
- 2017 · GS3 · 15 marks "Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period" Give reasons. How far the recent changes in Industrial Policy are capable…
- 2015 · Prelims In the Index of Eight Core Industries, which one of the following is given the highest weight? (a) Coal Production (b) Electricity generation (c) Fertilizer Production (d) Steel Production