Industrial Output Growth Moderates Under Revised Series
Why in the News ?
The government has released the Index of Industrial Production (IIP) under a revised 2022-23 base year, showing industrial output growth of 4.9% in April 2026, lower than the 5.8% growth recorded in April 2025 under the earlier series.
Industrial Performance Under the New IIP Series
● India’s industrial output, measured by the Index of Industrial Production (IIP), grew by 4.9% in April 2026.
● The new series adopts 2022-23 as the base year, replacing the earlier 2011-12 base year.
● Coverage has been expanded to include water supply, sewerage and waste management, and gas supply, alongside the traditional sectors of mining, manufacturing, and electricity.
● Among sectoral indices, mining and quarrying contracted by 5.1%, while manufacturing grew by 6.2%.
● The electricity and gas supply sector recorded growth of 4.9%, whereas water supply and waste management activities expanded by 6.6%.
● The revised series offers improved sectoral classification and greater data granularity.
Sector-Wise Trends and Key Findings
● The manufacturing sector, which accounts for nearly 75% of the IIP basket, remained the primary driver of industrial growth.
● Industries such as electrical equipment manufacturing recorded strong growth of 19.2%.
● However, several industries witnessed contraction, including coke and refined petroleum products, wearing apparel, and wood products.
● Under use-based classification, growth in capital goods and infrastructure/construction goods accelerated to 16% and 7.1%, respectively.
● Growth in primary goods, consumer durables, and consumer non-durables slowed compared to the previous year.
● The revised basket now includes 1,042 products grouped into 463 item categories, compared to 839 products earlier.
| About Index of Industrial Production (IIP): ● The Index of Industrial Production (IIP) is a key indicator that measures the performance of the industrial sector in India. ● It is compiled and released monthly by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). ● IIP tracks changes in the volume of production across industrial sectors. ● The major sectors covered include Mining, Manufacturing, Electricity, and under the revised series, Gas Supply and Water Supply & Waste Management. ● The index is used by policymakers, investors, and economists to assess industrial growth and overall economic performance. ● Revision of the base year ensures that economic indicators reflect the current structure of the economy more accurately. |