Archive · 14 Jan 2026
India Proposes Chain-Based IIP with Annual Updates
The Indian government wants to change how it calculates the Index of Industrial Production (IIP).
Right now, it uses a method that doesn't change much over time.
The new plan would update the weights every year to better reflect changes in the industry.
This means the IIP will show more accurate information about how different parts of the industry are doing.
The government is asking for feedback on this plan and will release the new data in May.
This change will make India's method similar to what other countries like the US and UK are already doing.
MoSPI proposes shifting from fixed-base Laspeyres framework to chain-linked methodology for IIP
New methodology will update weights annually to reflect recent production structure
Base year of IIP to be revised from 2011-12 to 2022-23
Sectoral weights for mining, manufacturing, and electricity to be revised annually using latest National Accounts Gross Value Added estimates
Stakeholders invited to provide feedback by January 25, new data to be released May 28
- Who
- Ministry of Statistics and Programme Implementation (MoSPI)
- What
- Proposed shift from fixed-base Laspeyres framework to chain-linked methodology for IIP
- When
- Discussion Paper 2.0 released on Tuesday, feedback deadline January 25, new data release May 28
- Where
- India
- Why
- To address concerns that the existing IIP has become outdated due to significant changes in the industry structure over the past 14 years
- Proposed Methodology
- Chain-based IIP with annual weight updates
- Current Base Year
- 2011-12
- New Base Year
- 2022-23
- Release Date for New Data
- May 28
- Stakeholder Feedback Deadline
- January 25
- Global Best Practices
- Recommended by OECD, Eurostat, and used by US, UK, Australia, Canada, and EU
- Data Sources
- National Accounts Gross Value Added estimates and Annual Survey of Industries