Industrial Output (IIP)
Context:
India's industrial output growth is measured by the Index of Industrial Production (IIP)
IIP slowed down to 4% in August 2025 from 5.3% in July.
This slowdown is attributed to weaker performance in manufacturing and mining.
Basics of IIP Index
The Index of Industrial Production is a composite indicator that tracks the growth of various industrial sectors.
It is compiled and published monthly by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation.
The index is broadly divided into eight sectors as listed in the table below
Weightage of Core Industries:
A major component of the IIP is the output of the eight core industries.
They have a combined weight of 40.27% in the index.
The Office of the Economic Adviser, DPIIT, releases the data for these core industries.
The individual weight of each core sector is as follows:
Core Industry
Weight in Index (%)
Petroleum Refinery Products
28.04 (Highest)
Electricity
(Since April 2014, data from Renewable sources are also included.)
19.85
Steel
17.92
Coal
10.33
Crude Oil
8.98
Natural Gas
6.88
Cement
5.37
Fertilizers
2.63