India has launched a new IIP series with a 2022-23 base year, expanding coverage to rare earth minerals, renewable energy, gas supply and waste management.
New Delhi, June 1: India has unveiled a revamped Index of Industrial Production (IIP) with a new base year of 2022-23, significantly expanding the scope of industrial measurement by incorporating rare earth minerals, renewable energy generation, gas supply, and water supply and waste management activities.
The Ministry of Statistics and Programme Implementation (MoSPI) announced the new IIP series on Monday, describing it as a major overhaul aimed at better reflecting the structure of the modern Indian economy and improving the measurement of industrial growth.
The revised series replaces the previous 2011-12 base year and introduces broader sectoral coverage, updated weights, a revamped product basket and greater granularity in industrial classification.
One of the most notable changes is the inclusion of Gas Supply and Water Supply, Sewerage and Waste Management activities in the industrial index, alongside the traditional sectors of Mining, Manufacturing and Electricity. The expansion is intended to provide a more comprehensive picture of industrial activity and align India's statistical framework with evolving economic realities and international standards.
The mining sector has also undergone a major restructuring. The new series includes minor minerals and rare earth minerals in addition to major minerals, making the index more representative of the country's mining output. Mining data are now classified into Fuel Minerals, Metallic Minerals including rare earth minerals, and Non-Metallic Minerals including minor minerals.
In another significant change, the electricity index has been disaggregated to separately capture electricity generation from renewable and non-renewable sources. This is expected to provide a clearer picture of India's energy transition and the growing contribution of renewable power generation.
The revised IIP basket now comprises 1,042 products grouped under 463 item groups, compared to 839 products under 407 item groups in the previous series. New additions include products such as CCTV cameras, magnetic stripe cards, non-woven textile articles, aircraft and spacecraft parts, stents and vaccines. At the same time, obsolete products such as kerosene, fluorescent tubes, CFLs, certain tyre tubes, printing machinery and sewing machines have been removed.
The manufacturing sector continues to dominate the index with a weight of 76.06 per cent, followed by Mining and Quarrying at 11.05 per cent and Electricity and Gas Supply at 10.87 per cent. Water Supply, Sewerage and Waste Management has been assigned a weight of 2.02 per cent as a newly introduced sector.
MoSPI has also expanded the number of item groups for which production data are collected in value terms, increasing them from 109 in the old series to 234 in the new series.
The new series draws data from 16 source agencies. New contributors include IREL (India) Limited under the Department of Atomic Energy for rare earth mineral data, state Directorates of Economics and Statistics for minor minerals, and agencies responsible for water supply and sanitation services.
According to MoSPI, the updated series provides a stronger picture of industrial performance in recent years. Based on the new 2022-23 series, overall industrial growth stood at 6.7 per cent in 2023-24, 6.4 per cent in 2024-25 and 4.3 per cent in 2025-26. Manufacturing recorded growth rates of 7.1 per cent, 6.3 per cent and 4.9 per cent respectively during the same period.
The Ministry noted that direct comparison between the old and new series should be approached with caution because of significant changes in coverage, methodology, item basket, weights and sectoral composition. The inclusion of new sectors such as water supply and rare earth minerals, along with revised electricity classifications, has altered the structure of the index.
MoSPI said the new IIP series represents a significant strengthening of India's industrial statistics system by providing a more representative, reliable and methodologically robust measure of industrial growth.
