Index of Industrial Production Grows 7.8%, 26-Month High

Context
India’s Index of Industrial Production (IIP) grew 7.8% in December 2025, a 26-month high, driven mainly by manufacturing, electricity, and strong capex-led demand, especially in infrastructure and capital goods.

Index of Industrial Production (IIP)
• What: Measures short-term changes in industrial output.
• Published by: National Statistical Office (NSO), Ministry of Statistics & Programme Implementation.
• Frequency: Monthly.
• Sectors & weights:
• Manufacturing ~77.6%
• Mining ~14.4%
• Electricity ~8.0%
• Current base year: 2011–12
• Proposed new base year: 2022–23
• Use: Tracks industrial momentum and feeds into GDP estimates.

Eight Core Industries
• What: Subset of IIP with ~40% weight.
• Industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity.
• Index published by: Ministry of Commerce & Industry (monthly).
• Importance: Early signal of infrastructure and industrial activity.

Index of Industrial Production
Index of Industrial Production
PYQ – 2012 ( Ans – C )
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