- Why in news
- On 28 October 2026, MoSPI released the Quick Estimates of IIP for September 2026 on the new base 2022-23=100. IIP grew 6.7% year-on-year, down from 8.0% in August 2026.
- What it is
- The Index of Industrial Production (IIP) measures changes in the volume of industrial output against a base year. MoSPI compiles it for India. The base year has been revised to 2022-23=100, and the classification now follows NIC-2025.
- Release schedule
- Quick Estimates come out on the 28th of every month, or the next working day if that is a holiday.
- Sectors
- IIP has four sectors: Mining & Quarrying, Manufacturing, Electricity & Gas Supply, and Water Supply, Sewerage & Waste Management. Manufacturing carries the largest weight, about 76%.
- Use-based classification
- Use-based groups are Primary, Capital, Intermediate and Infrastructure/Construction goods, plus Consumer durables and non-durables. Capital goods grew 10.4% in September 2026.
- Revision
- The Quick Estimate is revised later. The August 2026 indices were finally revised with the September release.
- New base year
- MoSPI has moved the All-India IIP base year from 2011-12 to 2022-23.
- Base year meaning
- The base year is the reference year against which later changes in production are measured.
- Methodology changes
- The revised series changes the item basket and weights, updates the factory panel, widens coverage to gas, water supply, sewerage and waste management, and allows factory substitution.
- Who compiles State IIP
- State Directorates of Economics and Statistics compile and release State-level IIP, while MoSPI gives technical guidance as the nodal ministry.
- Link to growth estimates
- IIP is an input in estimating overall economic growth.
Don’t confuse with IIP vs WPI: IIP measures the volume of industrial output (MoSPI). WPI measures wholesale price changes (Office of the Economic Adviser, DPIIT).
Don’t confuse with Quick Estimate vs final revision: The Quick Estimate comes in the first release and is revised later. The final revision comes with the release after next.
Don’t confuse with IIP vs Index of Eight Core Industries: The Eight Core Industries index covers only eight core sectors, which form a part of IIP. IIP covers mining, manufacturing and electricity at a wider level.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- IIP is a leading monthly indicator of industrial performance and feeds GDP estimates.
- A new base year better reflects the current industrial structure and products.
- A recent base year makes the index reflect the present industrial structure, improving GDP and policy inputs.
- Uniform methods across States make industrial data comparable.
Problems
- Quick Estimates rest on partial response rates and get revised.
- Volatile mining and some manufacturing groups make monthly readings noisy.
- States differ in capacity to collect timely and accurate factory data.
- Revising the item basket and weights breaks continuity with the old series and makes comparisons over time harder.
Way forward
- Raise source-agency response rates and timeliness of data.
- Update base years and item baskets regularly.
- Build State statistical capacity and train officials.
- Provide linking factors or back series so old and new data can be compared.
Put in your answer
IIP growth, Sept 2026: IIP grew 6.7%, with manufacturing at 7.6%.
Response rate: Quick Estimate response rate was 86.5%, final revision 92.0%.
IIP base shift: Cite the shift of the IIP base from 2011-12 to 2022-23 as an example of updating statistics to reflect the current economy.
Cooperative statistics: Use the MoSPI–State DES division of roles as an example of nodal guidance for uniform statistics.
- 2021Mains GS3 · Q1Explain how India's GDP computation methodology changed after the 2015 base revision
- 2017Mains GS3 · Q12Why industrial growth lagged overall GDP growth in post-reform period, and reform effects
- 2012Prelims Q39Which items are among the Eight Core Industries that carry a combined weight in IIP
- 2015Prelims Q8Which of the Eight Core Industries has the highest weight in the index
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statement I and II
Ours, not from a UPSC paper
Consider the following statements about the Index of Industrial Production (IIP) in India:
- Statement-I: The Quick Estimate of IIP is released on the 28th of every month, or on the next working day if the 28th is a holiday.
- Statement-II: The Index of Industrial Production is compiled and released by the Reserve Bank of India.
Which one of the following is correct in respect of the above statements?
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.The Quick Estimate of IIP is released on the 28th of every month, or the next working day if the 28th is a holiday.
True. Release is on the 28th, or the next working day.
2.The Index of Industrial Production is compiled and released by the Reserve Bank of India.
False. MoSPI compiles and releases the IIP.
3.In September 2026, Mining & Quarrying recorded negative growth while Electricity & Gas Supply grew by 11.2%.
True. Mining fell 6.2% and electricity and gas grew 11.2%.
4.The Use-Based Classification of IIP includes Capital Goods and Intermediate Goods among its categories.
True. Capital goods and intermediate goods are use-based categories.
5.Among use-based groups, Consumer non-durables recorded the fastest growth in September 2026.
False. Intermediate goods grew fastest at 12.2%; consumer non-durables grew only 1.4%.
6.IIP measures changes in the volume of industrial output against a base year.
True. IIP is a volume index relative to a base year.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.