IIP Overhaul from June 1: Base Year Revised to 2022-23; Gas, Water Supply & Rare Earth Minerals Included

In a major development, the central government on May 25 announced the revision of the base year for the Index of Industrial Production (IIP) from 2011-12 to 2022-23, effective June 1, 2026. It also widened the coverage to include sectors such as minor minerals, rare earth minerals, gas supply, water supply, and sewerage & waste management.

The Ministry of Statistics and Programme Implementation (MoSPI) in a statement said, “The new IIP series expands its scope by including minor minerals, rare earth minerals, gas supply, water supply, and sewerage & waste management, thereby broadening the overall coverage of the index. The item basket and weights have been revised to add relevant commodities and remove outdated ones, ensuring that each item or sector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. The updated IIP series is aligned with the National Industrial Classification (NIC-2025).”

It released the report of the Technical Advisory Committee (TAC) on revising the base year of the All-India Index of Industrial Production (IIP). The TAC, constituted in September 2024 under the chairmanship of Mridul K Saggar, professor at IIM Kozhikode, held eleven meetings to deliberate on the revision exercise. The committee included economists, academicians, government officials and representatives from State Directorates of Economics and Statistics.

Wider coverage in new IIP series

One of the key changes in the new series is the expansion of coverage to include sectors such as minor minerals, rare earth minerals, gas supply, water supply and sewerage & waste management.

The revised IIP basket now consists of 1,042 products mapped to 463 item groups. According to MoSPI, outdated items have been removed while new and relevant commodities have been added to better reflect present-day industrial activity.

The updated series has also been aligned with the National Industrial Classification (NIC)-2025.

Separate indices for renewable electricity

The new IIP series introduces greater granularity in data dissemination through additional sub-indices.

For the electricity sector, separate indices will now be released for power generated from renewable and non-renewable sources. Similarly, the Mining and Quarrying segment has been divided into sub-indices for Fuel Minerals, Metallic Minerals including Rare Earth Minerals, and Non-Metallic Minerals including Minor Minerals.

Consultative process before finalisation

As part of the revision process, the ministry had released three discussion papers in the public domain covering substitution of factories in IIP compilation, adoption of a chain-based IIP and seasonal adjustment of the index.

Suggestions were invited from experts, academicians, government departments and the public. The ministry also conducted three stakeholder consultation workshops before finalising the recommendations.

New series to be launched on June 1

The government said the first release under the revised IIP series will be published on June 1, 2026. It will provide index values from April 2023 onwards, along with the Quick Estimates for April 2026.

Apart from the All-India General Index, the release will include sector-wise indices for Mining and Quarrying, Manufacturing, Electricity & Gas Supply and Water Supply, Sewerage & Waste Management.

The ministry will also publish manufacturing sector indices at the 2-digit NIC-2025 level, use-based classification indices and linking factors under the new framework.