Govt releases comprehensive report ahead of new IIP 2022-23 series launch on June 1
New Delhi, May 25
In a bid to help users better understand and assimilate the new IIP 2022-23 series ahead of its official launch on June 1, the government on Monday said it has released a detailed report of the Technical Advisory Committee on Base Year Revision of the All-India Index of Industrial Production.
The first IIP release will present index values starting from April 2023 onwards, including Quick Estimates of April 2026.
Along with the All-India General Index of the IIP, the release will also include sector-wise indices for Mining and Quarrying, Manufacturing, Electricity & Gas Supply and Water Supply, Sewerage and Waste Management.
In addition, it will provide manufacturing sector indices at the 2-digit level of NIC-2025, indices based on Use-based Classification and linking factor, all scheduled for release on June 1, 2026, according to Ministry of Statistics & Programme Implementation.
"The item basket and weights have been revised to add relevant commodities and remove outdated ones, ensuring that each item or sector is assigned appropriate significance. The revised basket consists of 1,042 products mapped to 463 item groups," said the ministry.
The updated IIP series is aligned with the National Industrial Classification (NIC-2025).
The new series also introduces greater granularity through sub-indices, including separate indices for electricity generated from renewable and non-renewable sources.
Similarly, the Mining and Quarrying sector is now divided into three sub-indices covering Fuel Minerals, Metallic Minerals (including Rare Earth Minerals), and Non-Metallic Minerals (including Minor Minerals).
In addition, methodological enhancements have been proposed in index compilation.
These include the substitution of factories that are permanently closed or have significantly altered their production lines with comparable units, as well as the augmentation of panel of the factories by incorporating newly commissioned large-scale factories that begin producing relevant items during the currency of the IIP series.
The new series will adopt the Geometric Mean method for linking the 2011-12 series with the new 2022-23 series. The linking factors will be computed at aggregated levels, namely for the General Index and the Sectoral Indices, said the ministry.
— IANS
Reader Comments
Good to see the government finally updating the base year after so many years. But I hope the methodology for replacing closed factories and adding new ones is transparent. Otherwise, data manipulation allegations will always arise.
Nice to see the granularity—sub-indices for renewable vs non-renewable electricity is a game-changer for tracking green transition. But I hope the data collection from states is improved; else even the best methodology will fail.
As someone who tracks Indian markets, this revision is critical. The shift to NIC-2025 alignment and geometric mean linking are standard practices internationally. But the real test will be whether the data is released on time without delays—India's track record there is shaky.
Adding rare earth minerals to mining indices is brilliant! With China controlling most of the supply chain, having our own data will help in strategic planning. Hope the MSME sector is also represented properly in the new basket.
A base year revision after 11 years? That's a long gap for a dynamic economy like India. Good that they're finally doing it, but the 2026 quick estimates release date seems oddly far into the future. Are we waiting for more data?
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