Why in News?
The Ministry of Statistics and Programme Implementation (MoSPI) has revised the base year of the Index of Industrial Production (IIP) from 2011–12 to 2022–23, marking the 10th revision in the index’s history. The new series also adds a brand-new sector and updates weights to better reflect India’s current industrial structure.
What is the Index of Industrial Production (IIP)?
IIP is a composite index that measures the change in volume of production in Indian industries over a reference period. It compares monthly production values against the same month in the base year to track industrial health.
- Released by: National Statistical Office (NSO) under MoSPI
- Frequency: Monthly (with a 6-week lag)
- Old three core sectors: Mining, Manufacturing, Electricity
Key Changes in the New IIP Series (Base Year 2022–23)
1. Revised Base Year
- New base year: 2022–23 (revised from 2011–12)
- This is the 10th revision of the IIP base year
2. Expanded Sectoral Coverage — New Sector Added
- Old series: 3 sectors — Mining, Manufacturing, Electricity
- New series: 4 sectors — Mining, Manufacturing, Electricity + Gas Supply and Water Supply, Sewerage & Waste Management (entirely new sector added)
3. Updated Weights
- Weights updated based on Gross Value Added (GVA) from National Accounts Statistics (base 2022–23) at sectoral level
- Also based on Annual Survey of Industries (ASI) at NIC-2/3/4-digit for 2022–23
Historical Base Year Revisions of IIP
The IIP has been revised 10 times since its first preparation with base year 1937:
1937 → 1946 → 1951 → 1956 → 1960 → 1970 → 1980–81 → 1993–94 → 2004–05 → 2011–12 → 2022–23
Interconnected Static Concepts for Prelims
NSO and MoSPI
- National Statistical Office (NSO): Formed in 2019 by merger of Central Statistical Office (CSO) and National Sample Survey Office (NSSO)
- MoSPI: Ministry of Statistics and Programme Implementation — apex body for official statistics in India
Key Economic Indices released by NSO/MoSPI
- IIP — industrial production volume
- GDP/GVA — national accounts
- CPI — Consumer Price Index
- Annual Survey of Industries (ASI) — census of registered factories
GVA vs. GDP
- GDP = GVA + Net Taxes on products
- GVA measures value created by industries; GDP includes net taxes
National Industrial Classification (NIC)
- Used to classify industrial/economic activities in India
- Latest: NIC 2008 — aligned with ISIC Rev. 4 (International Standard Industrial Classification)
Quick Revision Table
| Parameter | Key Fact |
|---|---|
| Index | Index of Industrial Production (IIP) |
| Released by | NSO under MoSPI |
| Old Base Year | 2011–12 |
| New Base Year | 2022–23 |
| Revision Number | 10th revision |
| First IIP Base Year | 1937 |
| Old Sectors Covered | Mining, Manufacturing, Electricity (3 sectors) |
| New Sector Added | Gas Supply and Water Supply, Sewerage & Waste Management |
| Total Sectors (New Series) | 4 sectors |
| Weight Basis | GVA from National Accounts + ASI data (2022–23) |
| NSO Formed | 2019 (merger of CSO and NSSO) |
Trap / Confusing Points
| Common Confusion | Correct Fact |
|---|---|
| IIP is released by RBI | ❌ Released by NSO under MoSPI (not RBI) |
| IIP base year revision is the 9th | ❌ The 2022–23 revision is the 10th revision |
| First IIP was in 1946 | ❌ First IIP was prepared with base year 1937 |
| IIP now covers only 3 sectors | ❌ New series covers 4 sectors (Gas Supply & Water Supply added) |
| GVA = GDP | ❌ GDP = GVA + Net Taxes on products; GVA excludes net taxes |
| NSO is the old CSO | ❌ NSO = Merger of CSO + NSSO (formed 2019) |
Practice MCQs
1. The new base year of IIP revised by MoSPI is:
a. 2011–12
b. 2017–18
c. 2020–21
d. 2022–23
Ans: D
MoSPI revised the IIP base year from 2011–12 to 2022–23. This is the 10th revision in IIP’s history since its first base year of 1937.
2. Which new sector has been incorporated into IIP under the new 2022–23 base year series?
a. Agriculture and Allied Activities
b. Construction
c. Gas Supply and Water Supply, Sewerage & Waste Management
d. Financial Services
Ans: C
The new IIP adds “Gas Supply and Water Supply, Sewerage & Waste Management” as a 4th sector, alongside existing Mining, Manufacturing, and Electricity sectors.
3. IIP is released by which organisation?
a. Reserve Bank of India
b. NITI Aayog
c. National Statistical Office (NSO) under MoSPI
d. Ministry of Finance
Ans: C
IIP is released by NSO under MoSPI on a monthly basis, not by RBI or Finance Ministry.
4. How many times has the base year of IIP been revised, including the 2022-23 revision?
a. 8
b. 9
c. 10
d. 11
Ans: C
The 2022–23 revision is the 10th revision. Base years revised: 1937 → 1946 → 1951 → 1956 → 1960 → 1970 → 1980–81 → 1993–94 → 2004–05 → 2011–12 → 2022–23.
5. NSO was formed in 2019 by merging which two organisations?
a. NSSO and NCA
b. Central Statistical Office (CSO) and National Sample Survey Office (NSSO)
c. MoSPI and Finance Ministry Statistics Division
d. Planning Commission and CSO
Ans: B
NSO was formed in May 2019 by merging CSO (Central Statistical Office) and NSSO (National Sample Survey Office) under MoSPI.
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