Key Highlights
- April 2026 IIP rose to 118.9, marking a 4.9% year‑on‑year increase.
- Manufacturing contributed the most with a 6.2% surge, while mining contracted by 5.1%.
- The base year was shifted from 2011‑12 to 2022‑23, expanding the basket to 1,042 products.
- New sectors such as renewable electricity, rare‑earth minerals and high‑tech goods (CCTV, aircraft parts, medical stents, vaccines) entered the index.
- Obsolete items like CFL lamps and kerosene‑related products were removed.
Detailed Insights
The Ministry of Statistics and Programme Implementation released the latest IIP figures for April 2026, showing a composite index of 118.9 versus 113.4 a year earlier. The 4.9% rise reflects robust expansion in manufacturing (6.2% growth) and auxiliary services like water‑supply, sewerage and waste management (6.6%). Conversely, mining and quarrying slipped by 5.1%.
Manufacturing remains the dominant driver, with 17 of 23 industry groups posting positive growth. The strongest performers were electrical equipment (19.2%), other transport equipment (18.9%), textiles (15.6%), machinery and equipment (12.9%), and motor vehicles, trailers and semi‑trailers (12.7%).
The overhaul of the IIP series, announced earlier in the year, replaced the 2011‑12 base year with 2022‑23. This revision introduced 463 item groups (up from 407) and broadened product coverage from 839 to 1,042 items. Notable inclusions are gas supply, water‑supply and waste‑management services, rare‑earth and minor minerals, and a detailed split between renewable and non‑renewable electricity generation.
These changes align the index with India’s evolving industrial landscape, capturing growth in advanced manufacturing, renewable energy, and high‑technology sectors while discarding outdated categories.
Key Concepts
- Index of Industrial Production (IIP): A monthly statistic that gauges output across mining, manufacturing, electricity and related services.
- Base Year: The reference year against which current production is compared; shifted to 2022‑23 to reflect contemporary industrial structure.
- Item Basket: The collection of goods and services whose output is measured; expanded to 1,042 products in the 2026 series.
- Renewable Electricity Generation: Electricity produced from sources such as solar, wind and hydro, now distinctly tracked in the IIP.
- Rare‑Earth Minerals: Strategically important minerals included in the new series to mirror their rising economic relevance.