Industrial output slows to 4.9% in new data series with revised base year
India's Index of Industrial Production (IIP) grew 4.9% in April 2026, a slower rate than the previous year, under a newly revised series with 2022-23 as the base year. The updated series expands coverage to include water supply, sewerage, waste management, and gas supply, alongside the traditional mining, manufacturing, and electricity sectors. This revision aligns the IIP with other major macroeconomic indicators whose base years were also updated to 2022-23. The new methodology also features improved granularity and revised weights based on the updated Gross Value Added (GVA) 2022-23 series, providing a more comprehensive measure of industrial activity.
Key Points
- India's industrial output growth, measured by the IIP, slowed to 4.9% in April 2026 under a revised base year of 2022-23.
- The new IIP series expands its coverage to include water supply, sewerage, waste management, and gas supply, in addition to existing core sectors.
- The base year for major macroeconomic indicators, including IIP, has been revised from 2011-12 to 2022-23.
- The manufacturing sector, constituting about 75% of the IIP basket, saw some industries contract while others, like electrical equipment, grew significantly.
- Use-based classification categorizes industries into primary, capital, intermediate, infrastructure/construction, consumer durables, and non-durables, with varied growth rates in April 2026.
Exam Facts
- India's IIP grew 4.9% in April 2026.
- The base year for IIP has been revised from 2011-12 to 2022-23.
- Manufacturing sector constitutes about 75% of the IIP basket.
- The new IIP basket includes 1,042 products mapped to 463 item groups.
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