India's new Index of Industrial Production (IIP) series has shown stronger industrial growth over the past three years than the previous series, reflecting quantitative and qualitative changes. The revised series gives greater weight to intermediate goods than primary goods and introduces an entirely new sub-sector for water supply, sewerage, and waste management.
The latest data point shows IIP grew 4.9% in April 2026, up from 3.2% in March, suggesting limited disruption to industrial activity from the ongoing conflict in West Asia. The back series released along with the new index shows that industrial growth rate was faster in 2023-24, 2024-25, and 2025-26 than previously estimated.
The revised series has seen significant qualitative changes, with a total of 120 new items added, including Monazite, CCTV cameras, and credit/debit cards with magnetic stripes, while 64 items have been removed. The items were selected for the new series depending on their share in the 2021-22 and 2022-23 rounds of the Annual Survey of Industries (ASI).
Manufacturing's weight has decreased marginally, while mining and quarrying's weight has decreased, and electricity's weight has increased. The newly added "Water Supply, Sewerage & Waste Management" sector has a weight of 2%.
The revised index has also altered the weights of different groups in the use-based composition. Manufacturing sector expanded 6.2% in April, the fastest since December, while mining contracted for the fourth consecutive month at 5.1%.
