Illustration of India’s industrial transformation with modern factories, digital manufacturing, renewable energy, and updated economic data charts representing the IIP revision.

The IIP base year update reflects India’s shift toward high-tech, green, and digital industries in the post-pandemic economy.(Representing AI image)

Revisiting India’s Industrial Pulse: What the 2022–23 IIP Base Year Revision Means for Growth, Policy, and the Economy

- Dr.Sanjaykumar pawar

Introduction: Why the IIP Matters
Historical Evolution of India’s IIP
What Does a Base Year Revision Mean?
Key Changes in the Proposed 2022‑23 Base
Methodological Advances and International Alignment
Data, Projections & Potential Impacts
Challenges, Risks & Caveats
Policy Implications & Strategic Insights
Conclusion
Frequently Asked Questions (FAQ)
References

1. Introduction: Why the IIP Matters

In India’s fast-evolving economy, understanding industrial performance is key to making informed policy and investment decisions. That’s where the Index of Industrial Production (IIP) steps in. Published monthly by the Ministry of Statistics and Programme Implementation (MoSPI), the IIP tracks the physical volume of output in key industrial sectors — manufacturing, mining, and electricity — providing a real-time pulse of the country’s industrial health.

Why does it matter so much? Because the IIP isn’t just a number. It’s a high-frequency economic indicator that influences monetary policy, budgetary planning, infrastructure investment, and even private sector strategies. When the IIP rises, it often signals improving demand, capacity utilization, and employment generation. A dip, on the other hand, may indicate supply chain stress, inflationary pressures, or lagging consumer demand.

However, as industries evolve, so must our measurement tools. Over the years, India’s economy has undergone dramatic changes — from tech-driven production lines and clean energy solutions to shifting consumption patterns and digital manufacturing. Relying on outdated base years like 2011-12 for IIP can distort reality and misguide policy.

To keep pace with this transformation, India is now revising the base year of IIP to 2022-23, aligning it with upcoming updates to GDP and CPI series. This revision isn’t just statistical housekeeping — it’s a foundational reset that ensures industrial data reflects the current economic structure.

In this blog, we’ll explore why this change is vital, what updates are being made, and how it will impact GDP calculations, economic forecasting, and policymaking. Whether you're an economist, policymaker, business leader, or student, understanding the new IIP framework is essential for decoding India’s industrial future.

2. Historical Evolution of India’s IIP

To fully grasp the significance of the upcoming base year revision of the Index of Industrial Production (IIP), it’s essential to understand how the index has evolved over time. The IIP isn’t a static metric — it has been continuously refined to reflect India’s changing industrial landscape.

📜 Origins: IIP's Early Beginnings

India’s first attempt to measure industrial output dates back to 1937, when an index was compiled based on 15 key industries. These sectors represented over 90% of industrial output by value at the time, reflecting a much smaller and simpler industrial base. In the pre-Independence era, the focus was on core sectors like textiles, cement, steel, and sugar.

🔁 Base Year Updates Over Time

Since then, the IIP’s base year has been revised multiple times to stay relevant. The revisions occurred in:
1946, 1951, 1956, 1960, 1970, 1980-81, 1993-94, 2004-05, and most recently in 2011-12.

Each update re-calibrated the index to reflect:

A changing product basket
Shifting sectoral weights
New sampling techniques
Improved classification systems aligned with international standards

🚧 What’s Been Missing?

Despite improvements, the IIP has traditionally excluded sectors like construction, gas supply, and water management, mainly due to data limitations. These gaps created blind spots in measuring India’s true industrial output.

The 2011-12 revision, introduced around 2017, was a major upgrade — incorporating a larger number of items and more reliable data sources like the Annual Survey of Industries (ASI). But even this is now considered outdated, given the rapid digitization, rise of new industries (like electronics, pharma, and EVs), and the growing complexity of India’s manufacturing ecosystem.

🎯 Why Revisions Matter

Historically, base year revisions serve two key functions:

Relevance: Industrial structures shift. Older goods become obsolete, while new goods emerge (e.g. fluorescent tubes replaced by LEDs). Without updates, the IIP risks overemphasizing declining sectors.
Accuracy: Modern data sources — such as GST filings, digital production logs, and real-time factory data — enable a more accurate and timely assessment of industrial output.

⏩ The Road to 2022-23

The planned shift to 2022-23 as the new base year is not just a technical update — it’s a long-overdue reset. It promises to make the IIP a more dynamic, representative, and actionable tool for industrial policy and economic forecasting in India’s next growth phase.

3. What Does a Base Year Revision Mean?

Before we dive into the specifics of India’s latest Index of Industrial Production (IIP) base year update, it’s important to understand what a base year revision really involves. It’s not just a statistical formality — it’s a deep recalibration of how we measure industrial activity, tailored to reflect the evolving economic landscape.

🔍 Conceptual Meaning: More Than Just a New Year

A base year is the reference point used for measuring growth. In an index like the IIP, the value for the base year is set to 100, and all future performance is compared against it. So, if industrial output rises 10% over the base year, the index would read 110.

But it’s not just about picking a year — it's about recalibrating what we’re measuring and how we weigh it. As economies change, so do the relevance of different products and sectors. For example:

Obsolete goods (like CRT TVs or CFL bulbs) are phased out.
Emerging products (like LEDs, laptops, EV components) are added.
Sectoral weights are reassigned to better reflect their current contribution to industrial output.

India primarily uses a fixed-base system, but there's growing interest in more dynamic systems like chain-linking, which allow for rolling updates. These modern methods offer better responsiveness in a fast-changing industrial environment.

⚙️ Operational Steps: How a Base Year is Revised

A base year revision is a multi-step technical process involving:

Updated data sources – Mainly from the Annual Survey of Industries (ASI), GST filings, and administrative records.
Revamping the item basket – Removing outdated items and adding new-age products relevant to today’s economy.
Reweighting – Reassigning weights to products and sectors based on updated output or value data.
Sample redesign – Substituting closed factories or those that have changed product lines to maintain accuracy.
International alignment – Adhering to global frameworks like the International Recommendations for the Index of Industrial Production (IRIIP).
Calibration and transition – Ensuring continuity by publishing conversion factors, running parallel series, and validating results.

Ultimately, a base year revision ensures that the IIP stays relevant, reliable, and responsive. It reduces distortions, improves accuracy, and strengthens the index’s value as a tool for industrial policy, investment decisions, and economic forecasting.

4. Key Changes in the Proposed 2022‑23 Base

The upcoming revision of the Index of Industrial Production (IIP) base year to 2022‑23 marks a critical overhaul in how India measures industrial output. This isn’t just a routine update—it’s a comprehensive modernization effort, aimed at improving the index’s relevance, accuracy, and global alignment.

Based on insights from official documents by the Ministry of Statistics and Programme Implementation (MoSPI) and recent press coverage, here’s a breakdown of the key changes you can expect from the new IIP series.

4.1 Expansion and Modernization of the Item Basket

One of the most visible changes in the new IIP series is the revamp of the product basket—a move long overdue.

Outdated items like kerosene stoves, fluorescent tubes, analog TVs, and older types of machinery are being phased out, reflecting their declining share in modern production and consumption.
In their place, contemporary goods such as LED lighting, laptops, vaccines, solar panels, electric vehicle parts, and even aerospace components are being included.

Additionally, a major improvement is the reduction of the “Not Elsewhere Classified (nec)” category. In the current IIP, a large share of weights was allocated to this vague group. The new methodology assigns 95% of the index weight to clearly defined items, drastically improving transparency and specificity.

4.2 Sectoral Scope Extension: New Sectors Come In

The 2022-23 revision will extend the IIP’s sectoral reach, aligning it more closely with international standards such as those recommended by the International Recommendations for the Index of Industrial Production (IRIIP).

For the first time, minor minerals and gas supply will be included. These sectors have gained economic relevance but were previously left out due to data challenges.
The revision also explores including water supply, waste management, and sanitation services—sectors increasingly central to sustainable industrial development.

These inclusions will offer a broader and more accurate reflection of India’s evolving industrial ecosystem.

4.3 Overhauling Factory Substitution Rules

A longstanding issue with the IIP has been the static treatment of factory samples. Under the old system, if a factory was included once, it remained—even if it shut down or changed production lines.

The new methodology corrects this with dynamic substitution rules. Factories will now be replaced if they close or alter production, but only if 12 months of overlapping data can ensure smooth transitions. This will significantly improve the realism and responsiveness of the index.

4.4 Introduction of Seasonally Adjusted and Chain-Based Index

Another game-changing move is the plan to introduce a seasonally adjusted IIP. This “de-seasonalised” version will strip out seasonal fluctuations (e.g., festive season spikes or monsoon-related slowdowns), giving a clearer picture of long-term trends.

In addition, the MoSPI is exploring a chain-based indexing approach. Unlike the fixed-base method, chain-linking updates weights and base values more frequently, capturing structural changes in real time. This would make the IIP more adaptive and forward-looking.

4.5 New Release Timetable and Transitional Strategy

The proposed IIP series with base year 2022‑23 is expected to be rolled out in FY 2026‑27. To help users transition smoothly, MoSPI is planning:

A parallel (bridge) series for overlapping years, enabling comparison with the outgoing 2011‑12 base.
Backcasting and publication of conversion ratios to allow historical trend analysis.
Alignment with upcoming revisions in GDP and CPI series, creating a coherent macroeconomic data ecosystem.

🔄 A Transformational Reset, Not Just an Update

This proposed revision is arguably the most extensive reset since the 2011-12 update. By updating what we measure, how we measure it, and which sectors are included, the 2022‑23 IIP will offer a more precise, timely, and policy-relevant snapshot of India’s industrial performance.

For economists, policymakers, and business leaders, these changes promise greater clarity in interpreting industrial trends, and a stronger foundation for making evidence-based decisions.

5. Methodological Advances and International Alignment

As India prepares to roll out the revised Index of Industrial Production (IIP) with a new base year of 2022‑23, the focus is not only on updating product categories or sectoral weights — it’s also about building a more scientifically sound, globally comparable, and data-rich index.

Here’s a breakdown of the major methodological improvements and international alignments being incorporated into the new IIP framework.

5.1 Aligning with IRIIP (2010): India Meets Global Standards

The backbone of India’s IIP overhaul is the International Recommendations for the Index of Industrial Production (IRIIP, 2010), issued by the United Nations Statistics Division. This globally accepted framework lays down best practices to ensure that industrial indices are accurate, timely, and internationally comparable.

Key IRIIP guidelines being adopted in the new IIP include:

Periodic base revisions, ideally every five years, to reflect rapid economic changes.
Transparent, well-documented procedures for assigning weights to items and sectors.
Use of current data sources and modular product classifications aligned with international norms.
Introduction of seasonally adjusted and chain-linked series for deeper trend analysis.

By aligning with IRIIP, India enhances the credibility of its industrial data, making it easier for global analysts, credit rating agencies, and multilateral institutions to compare India’s performance with other economies.

5.2 Integrating New Data Sources: From Surveys to Digital

One of the most promising advances is the integration of modern data sources alongside traditional industrial surveys like the Annual Survey of Industries (ASI).

The revised IIP will leverage administrative datasets such as GST filings, electronic transaction records, and other digitally available data to get near real-time insights.
Factory-level reporting is undergoing digitization, cutting down manual errors and improving timeliness.
There’s also a push to link IIP data with input-output tables, offering a more holistic picture of industrial interlinkages and downstream effects.

This data-rich environment allows for more granular, accurate, and frequent tracking of industrial trends—making the IIP a much stronger tool for both policymakers and market participants.

5.3 Chain-Based Indexing: Adapting in Real Time

India is also exploring the adoption of a chain-based indexing methodology — a significant upgrade over the traditional fixed-base model.

In a fixed-base index, weights remain the same over a long period, leading to distortions as economic structures evolve. Chain-based indices, on the other hand, update weights periodically (often annually), enabling the index to:

Respond faster to changes in industrial structure and consumption trends.
Minimize base-year bias, especially when old weights no longer reflect economic reality.
Ensure smoother transitions between product categories, even as old industries phase out and new ones rise.

While chain indices are technically complex and demand more computation, they offer high fidelity to real-world changes — and India seems prepared to adopt this global best practice.

5.4 Improved Sample Design & Substitution Protocols

In the current IIP framework, once a factory is included in the sample, it often stays there—even if it closes down or shifts production. This leads to survivorship bias and skews the data.

Under the 2022-23 revision, MoSPI is introducing formal substitution protocols:

Factories that close or change operations will be replaced using overlapping 12-month data, maintaining consistency.
The notorious “Not Elsewhere Classified (nec)” category, often used as a statistical dumping ground, will be sharply reduced. Now, 95% of the index weight will go to clearly defined items, improving both transparency and interpretability.

Together, these changes bring the IIP in line with modern statistical standards, making it more representative of India’s industrial realities.

🌐 Towards a Smarter, Globally Benchmarked Index

The methodological advances in the 2022-23 IIP base revision represent India’s strongest step yet toward building a truly modern industrial index. By aligning with global standards, embracing digital data, and fixing legacy issues in design and categorization, the new IIP will be more accurate, adaptive, and relevant—not just for domestic policy, but also for India's standing in the global economic arena.

6. Data, Projections & Potential Impacts

A base year revision is more than just a statistical update—it reshapes how we view industrial growth, economic momentum, and the very fabric of national economic planning. As India prepares to roll out the 2022‑23 base year for the Index of Industrial Production (IIP), several data-related implications and interpretive shifts are expected.

Let’s unpack what this means for industrial growth rates, GDP/GVA estimates, and policy insights.

6.1 Revised Growth Rates — Upward or Downward?

Any change in the item basket or weights will inevitably lead to recalculated growth rates, especially for historical data.

If fast-growing industries like electronics, renewable energy, or pharmaceuticals were previously underweighted, the new index will better capture their momentum, likely showing stronger overall growth.
On the other hand, traditional sectors that have stagnated but had disproportionate weight in the older series may drag down growth figures under the revised system.

This doesn’t mean past growth was wrongly calculated—it simply reflects a more accurate picture of where India’s industrial engines are truly revving. The Ministry of Statistics and Programme Implementation (MoSPI) will likely release a bridge series to ensure a smooth transition and maintain long-term data continuity.

6.2 Impacts on GDP and GVA Estimates

The IIP is a crucial input for estimating quarterly Gross Value Added (GVA) in the manufacturing sector—making it a direct influencer of GDP figures.

A revised IIP could shift:

Quarterly growth estimates
Forecasting models used by RBI, NITI Aayog, and financial institutions
Policy planning and industrial strategies

With GDP and CPI also being re-based to 2022‑23, the upcoming revisions represent a complete overhaul of India’s macroeconomic measurement framework, likely due in early 2026.

6.3 What the Latest Data Tells Us

Recent trends provide a hint at sectors that might gain prominence:

As of October 2023, India’s IIP surged 11.7% year-on-year, led by mining (13.1%) and electricity (20.4%) growth.
Flagship initiatives like Make in India, PLI schemes, and industrial corridor projects are reshaping India’s manufacturing landscape.
Studies on sectors like mobile phone assembly show how India is integrating into global value chains, reinforcing the need for more granular, responsive industrial measurement.

The 2022‑23 base year revision will not just improve statistical accuracy—it will also refine how we understand India’s growth story, sectoral strengths, and investment priorities in the years ahead.

6.4 Scenario sketch: possible shifts

Sector / Feature	Likely Change in Weight / Representation	Implication
Electronics, ICT & components	Increased weight	Growth in tech industries will play a larger role
Renewable energy / green manufacturing	Better inclusion	As green transition accelerates, the index better reflects that shift
Mining & gas	Gains via inclusion	Minor minerals / gas may lead to a relatively higher baseline
Obsolete heavy engineering / machinery	Weight decline	These older sectors may shrink in relative importance
Residual / nec items	Shrinkage	Higher clarity and reduced ambiguity in index
Small / informal units	Potential better coverage	With better surveys, more granular inclusion is possible

These shifts may cause re-interpretation of past industrial cycles, with some sectors emerging more central than before.

7. Challenges, Risks & Caveats

Revising the base year of a national indicator like the Index of Industrial Production (IIP) is an important, but deeply complex, statistical exercise. While the benefits of updating the base to 2022‑23 are substantial — improving accuracy, aligning with current realities, and boosting policy relevance — the process isn’t without its share of challenges.

Here are some of the key risks and caveats India must navigate to ensure a smooth and credible transition.

7.1 Data Quality, Availability & Uniformity

One of the most fundamental challenges in any revision exercise is ensuring consistent and reliable data, especially when expanding the scope of the index.

New items and sectors (like minor minerals, natural gas, or components in aerospace manufacturing) may not yet have standardized or consistent data across states and reporting agencies.
Disparities in reporting — especially between centrally maintained records and state-level data — can lead to inconsistencies or double counting.
The informal and unorganized sectors, which still contribute significantly to Indian industry, often remain underrepresented due to gaps in formal registration and reporting mechanisms.

Without addressing these gaps, the revised IIP risks underplaying or overstating key segments of the economy.

7.2 Transition and Continuity Issues

Switching from one base year to another creates a discontinuity in the trend series, making historical comparisons less straightforward.

Comparing growth from the old (2011–12) series with the new (2022–23) series without bridge data may lead to misinterpretation.
The government and the MoSPI must provide well-constructed transition tables, conversion factors, and parallel series to ensure continuity.
Any abrupt jumps or dips in growth trends caused by reweighting or item changes need clear explanation to avoid public confusion or policy misreadings.

7.3 Revisions and Volatility in Chain-Based Systems

While the introduction of chain-based indexing offers dynamism and better real-time tracking, it also comes with trade-offs:

Updating weights more frequently (e.g. annually) can introduce short-term volatility in the data, making the trend line appear more “noisy.”
Stakeholders like businesses, analysts, and policymakers who are used to smooth and predictable patterns may find the new data harder to interpret without additional context.
Moreover, frequent revisions might lead to recurrent adjustments in economic forecasts, investment plans, or policy reactions, requiring a shift in how decisions are framed.

7.4 Template Bias & Structural Shifts

Even with all the updates, no base year revision is perfect — especially in fast-moving, innovation-led sectors.

Emerging industries such as artificial intelligence, biotechnology, renewable energy, and space tech are evolving so rapidly that their current contributions may not be fully captured.
Weighting decisions inherently involve expert judgment, which means that some nascent but high-potential sectors could be undervalued in the short term.
There’s also a risk of “template bias” — where the structure of today is projected too rigidly into the future, ignoring disruptive changes just around the corner.

7.5 Communication & Transparency

Perhaps the most critical — yet often overlooked — challenge is effective communication.

Analysts, media, and businesses need clear documentation, including methodology papers, bridge series, and frequently asked questions (FAQs) to interpret the new IIP accurately.
Poor communication could lead to misuse or politicization of the revised data, particularly if headline numbers change significantly.

Building public trust in the new index will depend not just on technical robustness, but on how clearly and transparently the changes are communicated.

Yes, there are challenges in revising the IIP base year — from data gaps to transitional hiccups. But if handled carefully, with clear communication, robust bridging tools, and a focus on transparency, these risks can be managed.

The gains in accuracy, responsiveness, and policy relevance far outweigh the transition risks — making this revision a necessary and positive step for India's economic data ecosystem.

8. Policy Implications & Strategic Insights

Updating the Index of Industrial Production (IIP) base year from 2011-12 to 2022-23 is more than a technical statistical exercise — it has profound implications for how India’s industrial economy is understood, managed, and nurtured. This revision offers policymakers, economists, and investors a sharper lens to view the industrial landscape and strategize accordingly.

8.1 Better Targeting of Industrial Policy

One of the most direct benefits of the base revision is the ability to design more precise industrial policies. With updated weights reflecting the latest industrial output mix and a refreshed item-level basket, policymakers can:

Identify emerging growth engines that might have been underweighted in the previous index.
Pinpoint lagging sectors requiring targeted incentives or reforms.
Calibrate flagship schemes like Make in India and Production Linked Incentive (PLI) programs more effectively, ensuring resources and infrastructure investments are aligned with current industrial realities.

This granularity means government initiatives can become more data-driven, timely, and impactful, improving India’s overall industrial competitiveness.

8.2 Improved Forecasting & Financial Modelling

A more responsive and accurate IIP improves the toolkit for economists, central banks, research analysts, and investors alike.

Short-term shocks — whether due to global supply chain disruptions, policy changes, or demand swings — can be detected sooner.
Improved seasonal adjustments and chain-linked indexing help smooth out noise, offering clearer insights into genuine economic trends.
Financial models incorporating IIP data will gain accuracy, helping stakeholders anticipate turning points and risks better.

Ultimately, this enhances the precision of monetary policy decisions, credit risk assessments, and investment strategies, creating a more stable economic environment.

8.3 Enhanced Credibility & International Comparisons

Aligning India’s IIP revision with International Recommendations for Industrial Production Index (IRIIP, 2010) standards and leveraging digitized, administrative data sources significantly boosts the methodological credibility of India’s industrial statistics.

This alignment facilitates cross-country benchmarking, allowing investors and analysts to compare India’s industrial performance with peers on a more consistent basis.
Global investors gain confidence when statistics are transparent, current, and internationally compliant, encouraging foreign direct investment and partnerships.

Such credibility helps India position itself as a reliable, modern economy on the global stage.

8.4 Reassessing Industrial Growth Narratives

The updated IIP may prompt a recalibration of India’s industrial growth story.

Sectors once considered slow-growing might reveal stronger momentum with updated weights and new product inclusions.
Conversely, some industries previously perceived as engines of growth might lose prominence.
This could influence how economists and policymakers interpret India’s structural transformation, especially the balance between agriculture, industry, and services.

Revised data can help craft more nuanced narratives that reflect the economy’s real dynamics — critical for long-term planning and public understanding.

8.5 Balancing with Service-Led Growth

While India’s services sector dominates GDP, industry remains crucial for employment generation, export potential, and infrastructure development.

The revised IIP ensures that industrial output is not overshadowed or rendered “invisible” in the national statistics.
By capturing new-age industries and expanding sectoral scope, the index reflects the diversity and dynamism of Indian industry.
This balance supports policies aimed at inclusive growth, ensuring that services-led gains are complemented by strong industrial foundations.

Maintaining a robust industrial measurement framework safeguards India’s ambition for sustainable and balanced economic development.

The IIP base year revision is far from a mere statistical update — it represents a strategic reset. It equips India with a modern, relevant, and internationally aligned industrial barometer. The improved data granularity and methodological rigor will empower better policymaking, sharper economic analysis, and stronger investor confidence.

As India charts its course toward becoming a global manufacturing and innovation hub, the updated IIP will be a cornerstone for informed decisions and sustained industrial progress.

9. Conclusion

India’s upcoming revision of the IIP base year (to 2022‑23) is far more than a statistical housekeeping exercise. It is a watershed in the country’s data architecture: adjusting the lens through which we view industrial growth, policy, and structural change.

By updating the item basket, expanding sectoral scope, redesigning sampling protocols, and exploring chain-linking, India is attempting to create a sharper, more dynamic measure of industrial production. This new IIP, once rolled out (tentatively from FY 2026‑27), will feed into the revamped GDP and CPI frameworks, completing a synchronized reset of India’s macro indicators.

Yet, the success of this exercise hinges on rigorous execution, transparent communication, and continuous updates. For users — economists, policymakers, business analysts — the challenge will be to interpret overlapping series, embrace methodological shifts, and recalibrate expectations.

In the years ahead, the revised IIP may become a more reliable compass in assessing India’s industrial pulse, helping steer policy, investment, and research in a rapidly evolving economy.

10. Frequently Asked Questions (FAQ)

Q1. Why change the IIP base year now (2022‑23) and not earlier or later?
The lag between base year updates often reflects data constraints, methodological readiness, and structural change thresholds. The decade since 2011‑12 has seen rapid shifts in technology, manufacturing, clean energy, digital production, and supply chains — making the 2011‑12 base progressively obsolete. The 2022‑23 year is timely: it captures post‑pandemic restructuring and uses recent survey data (e.g. ASI 2022‑23).

Q2. Will the revised IIP make India’s growth look higher or lower historically?
It depends. Growth in some sectors that have expanded rapidly but were underweighted may get upward revision; sectors that have shrunk relative to others may pull down. The net effect is unpredictable and will depend on how weights and baskets are adjusted. Careful bridge series will be needed to interpret the shift.

Q3. When will the new IIP series be released?
The MoSPI has proposed launching the revised IIP (2022‑23 base) from FY 2026‑27. Prior to that, parallel series or backcasts may be published for overlap years.

Q4. How will this affect GDP / growth estimates?
Since IIP feeds into GVA calculation for manufacturing, changes in IIP will affect industrial GVA growth estimates and thus influence overall GDP growth numbers. Given that GDP is also being rebased concurrently, the entire macro framework will be recalibrated.

Q5. What is chain-based indexing, and will India adopt it?
Chain-based indexing uses rolling weight updates (say annually) instead of a fixed-base. This allows more flexibility and responsiveness to structural change. India is exploring adopting a chained methodology for the IIP to improve relevance.

Q6. Can this revision eliminate statistical biases or errors entirely?
No revision can eliminate all errors. Challenges involving data quality, coverage gaps, reporting lags, classification differences, and judgmental decisions will persist. But the revision can reduce structural biases and improve accuracy and transparency.

11. References

Below is a list of credible sources (government, news, research) used in this blog:

MoSPI — IIP official page, background and revision announcements
MoSPI — IIP Background document
Indian Express — “New base year for GDP, CPI, IIP from early 2026”
Economic Times / MoSPI proposals on base revision
BusinessToday / reports on IIP revision
Indian Express — explained on IIP methodology
RealEconomy / Charts on industrial production trends
CEIC / industry growth chart
The Anatomy of India’s Industrial Interdependencies (research on micro data and input-output)

Saturday, October 11, 2025

India’s IIP Base Year Revised to 2022-23: What It Means for Industrial Growth, GDP, and Policy