New series IIP from June 1 to give better estimates on factory output

India’s macroeconomic data is set to get one more revamp that will help in more accurate estimation of factory output. An updated series of the Index of Industrial Production with a base year of 2022-23 and a wider coverage with several new products is set to be released on June 1. This follows the updation of the GDP estimates and Consumer Price Index earlier this year.

The new IIP will continue to cover the three broad industry sectors of mining, manufacturing and industry. But besides the existing sectoral coverage, it will also cover minor minerals, rare earth minerals, gas supply, water supply, sewerage and waste management. Further, it will release indices at greater granularity by providing separate indices for generation of electricity through renewable and non-renewable, gas supply, fuel minerals, metallic minerals and non-metallic minerals, water supply, sewerage and waste management.

To keep pace with the changing requirements of the economy and demands of consumers, the new IIP series has also included 120 new item groups such as cards with magnetic stripes like debit and credit cards, CCTV cameras, articles of nonwoven textiles, parts of aircraft and spacecraft, stents and non-veterinary vaccines. Meanwhile, 64 items groups of products not used very commonly have also been dropped in the new series. These include kerosene, fluorescent tubes and CFLs, tubes for bicycles, tricycles, rickshaw tyres and tubes for light motor vehicle tyres as well as printing machinery and sewing machines.

In all, the item basket for the new IIP series has been finalised, covering 463 item groups which includes 120 new item groups as compared to 407 items in the previous series.

The Ministry of Statistics and Programme Implementation, which is carrying out the updation of the IIP has also said that the Wholesale Price Index (WPI) is being used as deflator for value-based items for now. But once the Output Producer Price Index (Output PPI) is released, it is likely to be used as the deflator.

The IIP is typically released on the 28th of every month. The new series IIP on June 1 will have the data for May 2026.