The National Statistics Office (NSO) has announced a comprehensive revision of India's Index of Industrial Production (IIP) series, shifting the base year from 2011-12 to 2022-23 and releasing the new series on June 1. According to the Technical Advisory Committee (TAC) report, the revised series will include 463 item groups compared to 407 in the previous 2011-12 series, with manufacturing coverage expanding from 405 to 455 item groups. The committee emphasized that this revision demonstrates improved alignment with current industrial structure, greater sectoral granularity, and enhanced responsiveness to evolving production patterns, thereby strengthening the statistical robustness and policy relevance of the IIP.
The most significant addition includes rare earths and minor minerals for the first time, along with piped natural gas (PNG) distribution and water supply, sewerage and waste management. As reported by the NSO, the committee recommended adding one rare earth mineral and nine minor minerals to the existing fuel and minerals basket, noting that these materials are becoming increasingly important for infrastructure, renewable energy, electronics, and advanced technologies. India holds the world's third-largest reserves of rare earth elements (REEs), with commercial production of rare earth permanent magnets expected to begin by end of 2026. The entirely new water supply, sewerage and waste management sector will track volume data through rural and urban tap connections, sewerage and septage connections across 500 AMRUT cities, and waste collected and processed in urban areas.
The manufacturing sector will see 64 item groups dropped and 120 new ones added, including the removal of kerosene, iodised salt, incandescent lamps, fluorescent tubes and compact fluorescent lamps (CFLs), electric filament lamps, sewing machines, wines and butter. According to the TAC report, the committee also recommended separate dissemination of electricity generation from renewable and non-renewable sources, which will be of significant interest for public policy, green finance investors, and researchers in energy and environment sectors. The electricity and gas segment will also include PNG distribution for the first time.
The committee recommended adopting the Output Producer Price Index (PPI) as the preferred deflator for the new series once it becomes available, replacing the Wholesale Price Index (WPI) which will continue only as an interim measure. As reported by the NSO, moving to the PPI will bring India's index in line with international best practice, with the Office of the Economic Adviser currently developing a PPI with a 2022-23 base year. The committee also recommended compiling and disseminating the index using the latest industrial classification, NIC 2025, which aligns with international standards and reflects digitalisation and green energy activity. Among other recommendations, the committee suggested retaining "not elsewhere classified" items to better capture emerging products, aligning state-level indices with national methodology, and studying the feasibility of a separate production index for the vast unincorporated manufacturing sector.
