New Delhi, September 30, 2025 – India’s industrial output showed improved momentum in August 2025, with the Index of Industrial Production (IIP) recording 4% growth compared to 3.5% in July 2025.
What Is IIP?
The Index of Industrial Production is released by the Ministry of Statistics and Programme Implementation (MoSPI). It measures industrial output across three core sectors: mining, manufacturing, and electricity, providing crucial insights into India’s industrial health.
The index uses the Laspeyres Formula and Quantum Index to track physical production levels. This methodology helps policymakers and economists assess real industrial performance without price distortions affecting the data.
August Shows Slow But Steady Recovery
Industrial growth in July 2025 stood at 3.5%, which improved to 4% in August 2025. While the upward trend indicates slow recovery, experts suggest industrial momentum remains moderate compared to pre-pandemic levels.
The manufacturing sector continues to be the largest contributor to IIP. Mining and electricity sectors have shown varied performance, with seasonal factors influencing monthly fluctuations in output across different industrial segments.
Major Base Year Change Coming In 2026
The current base year for IIP is 2011–12, but MoSPI has announced a significant update. From February 2026 onwards, the base year will shift to 2022–23, bringing the index in line with contemporary economic structures.
This recalibration will provide more accurate reflections of India’s evolving industrial landscape. Related economic indices including GDP and CPI will also undergo base year changes, ensuring consistency across major economic indicators used for policy formulation.
The base year revision will better capture structural changes in India’s industrial composition over the past decade, including technology sector growth and manufacturing diversification.