Industrial output slows to 4.9% in new data series, Pg1

Key Highlights:

• India's Index of Industrial Production (IIP) grew by 4.9% in April 2026 under the revised series with 2022-23 as the base year.
• This growth rate is slower compared to the 5.8% recorded in April of the previous year, which used 2011-12 as the base year.
• The new series broadens coverage by incorporating sectors like water supply, sewerage and waste management, and gas supply.
• The manufacturing sector output grew at 6.2%, while mining and quarrying declined by 5.1%.

IIP.png

Detailed Insights:

• The revision of the IIP base year to 2022-23 follows the revision of other major macroeconomic indicators, starting with the GDP.
• The new series includes improved granularity with detailed data classification for sectors like mining (fuel, metallic, non-metallic minerals) and electricity (renewable, non-renewable).
• The new IIP basket consists of 1,042 products mapped to 463 item groups, compared to the older series with 839 items and 407 item groups.
• Within the manufacturing sector, industries like coke and refined petroleum products and wearing apparel experienced contraction.
• The use-based classification shows that growth slowed in primary goods, consumer durables, and consumer non-durables, while capital goods and infrastructure goods output growth increased.

Key Concepts Involved:

• Index of Industrial Production (IIP): An index that shows the growth rates in various industry groups of the economy in a specified period.
• Base Year: The reference year against which changes in economic indicators like GDP and IIP are measured.
• Gross Value Added (GVA): A measure of the total value of goods and services produced in an economy, less the cost of intermediate consumption.