Rare earths to waste management:
What changes in new IIP 2022-23 series

New Delhi, May 28, 2026

MoSPI will launch the new IIP 2022-23 series on June 1, adding rare earths, gas supply, water supply and waste management to better reflect India's changing industrial economy

The government is preparing to launch a new series of the Index of Industrial Production (IIP), with 2022-23 as the new base year, replacing the current 2011-12 series.

Set to be released on June 1, the Ministry of Statistics and Programme Implementation (MoSPI) said the revised series reflects changes in the economy, the rise of new industries, technological shifts and changing production patterns over the last decade. Here’s a closer look at what is changing in the new IIP series and why it matters.

What is the Index of Industrial Production (IIP)?

The Index of Industrial Production, or IIP, is one of the country’s key high-frequency economic indicators. It tracks changes in industrial output over time compared to a fixed base year.

The index measures production trends across sectors such as mining, manufacturing and electricity. It helps policymakers, economists and businesses understand whether industrial activity is expanding or slowing down.

The IIP is released every month and acts as an important indicator of economic momentum. Under the new series, the index will continue to be released with a 28-day lag from the reference month.

Why is the base year being revised?

A base year serves as the benchmark against which current production levels are compared. In the index, the base year is assigned a value of 100.

MoSPI said the base year needs to be revised periodically to reflect structural changes in the economy. Over time, some industries grow rapidly, new products emerge and older products become less relevant.

The current IIP series uses 2011-12 as the base year. Since then, India’s industrial landscape has changed significantly, with greater use of renewable energy, expansion in electronics manufacturing, growth in medical products and rising focus on infrastructure and digital industries.

The ministry said 2022-23 was selected as the new base year because it represents a relatively stable economic period and aligns with the base year used for other macroeconomic indicators such as GDP and Wholesale Price Index (WPI).

What new sectors have been added to the IIP?

One of the biggest changes in the new series is the expansion of coverage beyond the traditional sectors of mining, manufacturing and electricity.

The revised series will now include:

• Gas supply
• Water supply
• Sewerage
• Waste management

In the mining sector, the new series will also cover minor minerals and rare earth minerals along with major minerals already included in the earlier series.

According to MoSPI, these additions aim to give a more comprehensive picture of industrial activity in the economy.

The ministry said the revised index will also provide more detailed data by separately tracking:

• Renewable and non-renewable electricity generation
• Fuel minerals
• Metallic minerals
• Non-metallic minerals
• Gas supply
• Water supply
• Sewerage and waste management

This increased granularity is expected to help policymakers better track sector-specific trends.

How has the item basket changed in the new series?

The number of item groups included in the IIP basket has increased significantly in the new series. The total number of item groups has risen from 407 in the 2011-12 series to 463 in the 2022-23 series.

In mining and quarrying, the earlier single item group with 29 items has now expanded to three item groups with 44 items. The manufacturing sector now has 455 item groups compared to 405 earlier.

Meanwhile, the electricity and gas supply category has expanded from one item group to three item groups.

A completely new category -- water supply, sewerage and waste management -- has also been added with two item groups.

Which new products have been added?

MoSPI said 120 new item groups have been included in the revised series to reflect changes in industrial production and emerging sectors.

Some of the newly added products include:

• CCTVs
• Cards with magnetic stripes such as debit and credit cards
• Articles made from non-woven textiles
• Aircraft and spacecraft parts
• Stents
• Vaccines other than veterinary vaccines

The ministry said these additions better capture modern manufacturing activity and newer industrial trends.

Which products have been removed?

As many as 64 item groups have been removed from the revised basket because they are no longer as relevant in the current industrial structure.

Some of the dropped items include:

• Kerosene
• Fluorescent tubes
• CFL bulbs
• Bicycle and rickshaw tyre tubes
• Printing machinery
• Sewing machines

The removal of these products reflects changing technology and consumption patterns in the economy.

How are products selected for the manufacturing basket?

The ministry said the manufacturing basket has been prepared using data from the Annual Survey of Industries (ASI) for 2021-22 and 2022-23.

The selection process focuses on products that make a significant contribution to industrial output.

It said the basket has been designed at the three-digit industry group level under the National Industrial Classification (NIC) system to ensure adequate coverage. Products contributing up to 90 per cent of output within an industry group were considered while preparing the basket. Additional products were also included where needed to ensure broad representation.

Emerging products contributing more than 2 per cent of output in an industry group were also added to capture changing industrial trends.

What are the six use-based categories in the IIP?

The revised series will continue with the six use-based classifications already followed in the earlier IIP series.

These are:

• Primary goods
• Capital goods
• Intermediate goods
• Infrastructure and construction goods
• Consumer durables
• Consumer non-durables

Primary goods include products obtained directly from natural resources such as minerals, fuels and electricity.

Capital goods include machinery and equipment used for production, such as tractors, boilers and industrial machinery. These are closely watched to assess investment activity in the economy.

Intermediate goods are products used as inputs in the production process, including steel pipes, yarn and automobile parts.

Infrastructure and construction goods include products such as cement, cables, paints and bricks.

Consumer durables include products with a long lifespan such as televisions, mobile phones, air-conditioners and passenger vehicles.

Consumer non-durables include daily-use products such as edible oils, milk, medicines, tea and biscuits.

How will industrial output be measured?

The ministry said the new series will continue to follow a hybrid method for measuring industrial production. For products where output can be measured uniformly, quantity-based measures will be used. For products where quality differences make quantity comparisons difficult, value-based indicators will be used instead.

For products that take more than a month to manufacture, work-in-progress in value terms will be considered as a measure of output.

What changes are being made in data collection and methodology?

MoSPI said the revised series includes provisions for replacing factories in cases where units remain non-responsive or shut down for long periods.

It also said Wholesale Price Index (WPI) will continue to be used as the deflator for value-based items until the proposed Output Producer Price Index (Output PPI) becomes available and stable enough for use.

Seasonally adjusted IIP data will not be released immediately with the new series. The ministry said seasonal adjustment requires a longer and stable time series, which will only become available after several years of data collection under the new base year series.

[The Business Standard]