Index of Industrial Production (IIP)
Why it Matters?
India’s Index of Industrial Production (IIP) grew 3.5% in July 2025, led by 5.4% growth in manufacturing. Mining contracted (-7.2%), while electricity rose 0.6%. Infrastructure goods (11.9%), consumer durables (7.7%) and intermediate goods (5.8%) drove use-based growth.
What You Should Know?
The Index of Industrial Production (IIP) is a composite indicator of industrial activity in India.
It measures the changes in the volume of production in mining, manufacturing, and electricity.
It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
The base year is 2011–12.
IIP has a weightage structure: Manufacturing (77.63%), Mining (14.37%), and Electricity (7.99%).
The eight core industries together account for about 40.27% of the weight of items included in the IIP.
These are refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilisers, listed in descending order of their share.
Significance of IIP
It indicates the short-term growth trends in the economy.
It helps policymakers and the RBI in monetary policy formulation.