Index of Industrial Production (IIP)

Why in news: India’s industrial production growth, measured by the Index of Industrial Production (IIP), surged to a 25-month high of 6.7% in November 2025, indicating a revival in industrial activity driven by manufacturing momentum and improved demand conditions.

About Index of Industrial Production (IIP)

What is IIP?

IIP is a composite index that measures short-term changes in the volume of industrial production in the economy.

It serves as a high-frequency indicator of industrial performance and economic momentum.

Institutional Framework

1Published by: Ministry of Statistics and Programme Implementation (MoSPI)

2Frequency: Monthly

3Base Year: 2011–12

Sectoral Coverage & Weights

IIP covers three broad industrial sectors:

Manufacturing dominates the index, making it the primary driver of overall IIP trends.

Uses & Significance

Tracks industrial growth cycles and capacity utilisation.

Acts as a leading indicator for GDP trends, especially for the secondary sector.

Used by:

oRBI for monetary policy assessment

oGovernment for industrial and investment policy

oInvestors and analysts for economic forecasting