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
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
