New Index of Industrial Production (IIP) Series
The National Statistics Office has announced the new IIP series with a base year shift from 2011–12 to 2022–23, set for release on June 1. This series marks several key updates and inclusions.
Key Updates and Inclusions
- Expansion: The number of item groups has increased from 407 to 463.
- Manufacturing: Item groups in manufacturing rise from 405 to 455, with 64 dropped and 120 new additions.
- New Additions: Rare earths, minor minerals, piped natural gas (PNG), and water supply, sewerage, and waste management are included.
- Dropped Items: Kerosene, iodised salt, incandescent lamps, and several others.
The revised item basket improves alignment with current industrial structures, offering greater sectoral granularity and responsiveness to evolving production patterns.
Sectoral Recommendations
- Mining: Inclusion of one rare earth mineral and nine minor minerals, vital for infrastructure and advanced technologies.
- New Sector: Water supply, sewerage, and waste management added. Tracking through rural and urban tap connections and waste data.
- Electricity and Gas: Distribution of PNG included; separate tracking of renewable and non-renewable electricity generation.
Statistical and Methodological Enhancements
- Deflator Update: Adoption of the output Producer Price Index (PPI) over the Wholesale Price Index for better alignment with international standards.
- Classification: Use of National Industrial Classification 2025 to reflect digitalization and green energy activities.
- Additional Recommendations: Retention of "not elsewhere classified" items; alignment of state-level indices with national methodology; feasibility study for a separate index for the unincorporated manufacturing sector.
The introduction of these updates aims to ensure the IIP remains representative of the current industrial landscape and accurately reflects evolving economic realities.
