Key Details
The MoSPI release combines two developments: the first industrial output release under the revised 2022–23 IIP series and a major methodological overhaul designed to better capture India’s evolving industrial economy.
April 2026 Industrial Signals | Major Updates in the New IIP Series |
|---|---|
General IIP: +4.9% YoY | Base Year: 2011–12 → 2022–23 |
Manufacturing: +6.2% | Basket Expanded: 407 → 463 item groups |
Mining & Quarrying: −5.1% | Product Coverage: 839 → 1,042 products |
Capital Goods: +16.0% | Value-Based Reporting: 109 → 234 item groups |
Infrastructure Goods: +7.1% | Industrial Scope Expanded: Gas, Water, Sewerage & Waste Management |
Electrical Equipment: +19.2% | New-Economy Products Added: vaccines, stents, CCTV cameras |
Summary
Modernising India’s Industrial Growth Tracker
The Ministry of Statistics and Programme Implementation (MoSPI) has operationalized the revised 2022–23 base year series for the All India Index of Industrial Production (IIP), replacing the earlier 2011–12 framework. The revision seeks to align industrial statistics with structural changes in the economy by expanding product coverage, integrating newer sectors, and improving production measurement systems.
The April 2026 release is therefore significant for two reasons: it reports the first industrial output data under the revised series while simultaneously introducing a modernized statistical architecture for tracking industrial growth.
What Changed in the 2022–23 IIP Series
The revised framework substantially broadens industrial representation.
The IIP basket expands from 407 to 463 item groups and from 839 to 1,042 products. New high-growth products—including vaccines, stents, magnetic stripe cards and CCTV cameras—have been incorporated, while obsolete products such as kerosene and fluorescent tubes have been removed.
The industrial boundary itself has widened. Alongside traditional mining, manufacturing and electricity segments, the revised index now incorporates Gas Supply, Water Supply, Sewerage and Waste Management, increasing the number of contributing source agencies to 16.
Measurement methods have also been modernized. Value-based reporting expands sharply from 109 to 234 item groups, improving accuracy in industries where production value offers a better indicator than physical output volumes. Data collection is increasingly supported through digital reporting systems and automated validation workflows, strengthening statistical consistency and reducing reporting lag.
What the April 2026 Data Signals
The first release under the revised series reports 4.9 percent year-on-year industrial growth in April 2026, with the General IIP rising to 118.9 from 113.1 in April 2025.
The data suggests steady industrial expansion led by manufacturing and investment-oriented sectors, though growth remains uneven across segments.
Manufacturing emerged as the principal driver, expanding 6.2 percent, with 17 of 23 industry groups recording positive growth. Strong momentum came from:
Electrical equipment: +19.2%
Machinery and equipment: +12.9%
Motor vehicles: +12.7%
This growth offset a 5.1 percent decline in Mining & Quarrying.
The use-based classification provides an important signal about the character of industrial activity:
Capital Goods: +16.0%
Intermediate Goods: +7.7%
Infrastructure / Construction Goods: +7.1%
Consumer Durables: +4.3%
Consumer Non-Durables: +2.8%
The 16 percent surge in Capital Goods is particularly significant, as it often reflects expanding factory investment and capacity creation. Growth in Intermediate and Infrastructure Goods further indicates wider industrial and supply-chain momentum rather than purely consumption-driven demand.
Historical Bridging and Statistical Continuity
MoSPI has also released comparative estimates to bridge the old and revised series, indicating that the 2022–23 framework captures industrial activity more comprehensively.
Under the revised series:
FY2023–24: 6.7% growth (vs 5.9% under old series)
FY2024–25: 6.4% (vs 4.0%)
FY2025–26: 4.3% (vs 4.1%)
These calibration exercises help preserve statistical continuity while enabling policymakers and researchers to compare industrial trends across both methodologies.
What is a “Use-Based Classification Framework” in Macroeconomics?
Use-based classification groups industrial products according to their economic purpose rather than their material composition. Goods are classified as Capital Goods, Intermediate Goods, Infrastructure Goods, Consumer Durables, and related categories. This helps policymakers identify whether industrial growth is being driven by investment, supply chains, or final consumer demand. Rapid growth in Capital Goods, for instance, often signals stronger investment and industrial capacity expansion.
Policy Relevance
The revised 2022–23 IIP series strengthens India’s industrial monitoring framework by producing a more representative and investment-sensitive picture of economic activity.
Improves Industrial and GDP Measurement:
Updating the base year and widening coverage reduces statistical blind spots and aligns industrial tracking more closely with present-day production structures.Signals Continuing Investment Momentum:
The 16 percent growth in Capital Goods suggests strong industrial capex activity and reinforces the role of infrastructure and manufacturing investment in growth.Captures Emerging Manufacturing Segments More Effectively:
Including products such as vaccines and medical devices improves visibility over high-value sectors central to India’s pharmaceutical and advanced manufacturing ambitions.Expands Monitoring of Utility and Infrastructure Sectors:
Bringing gas, water and waste-management activities into the index offers better tracking of industrial infrastructure and public utility expansion.Strengthens High-Frequency Data Systems:
Expanded value-based reporting and digitally validated data systems improve statistical quality and provide cleaner inputs for fiscal and monetary policy decisions.
Follow the Full Report Here: All India Index of Industrial Production (IIP) – Press Release (Base Year 2022-23)