Loading…
The Index of Industrial Production rose 6.7% year-on-year in July 2026, according to data released by MoSPI on 28 August 2026.
The index stood at 124.8 in July 2026 against 117.0 in July 2025; June 2026 growth was revised up to 8.8% from a provisional 7.3%.
Manufacturing grew 7.3% and electricity and gas supply 8.7%, while mining and quarrying contracted 0.9%.
The use-based split points to investment rather than consumption: capital goods up 16.1% and consumer durables up 10.5%, but consumer non-durables down 1.0%.
The data comes from the new IIP series with base year 2022-23, effective from 1 June 2026, which widened coverage to 1,042 products across 463 item groups.
The IIP is a composite indicator that tracks the change in the volume of production of a fixed basket of items over time, relative to a base year whose index is set at 100. It measures physical output, not value, so price changes do not inflate it. It is compiled and released monthly by the National Statistics Office under MoSPI, with a lag of 28 days from the reference month. Two figures are reported each month and they answer different questions: the index level (124.8 for July 2026) says how much output has risen since the base year, while the growth rate (6.7%) compares output with the same month a year earlier. An index level that is flat month-on-month is therefore entirely compatible with strong year-on-year growth.
Simple Analogy: The index level is the reading on a car's odometer; the growth rate is the speedometer. The odometer barely moving over one minute tells you nothing about how fast you are going compared with last year's journey.
Compiles and releases the Index of Industrial Production, the Consumer Price Index and national accounts statistics
GS Paper 3 > Indian Economy: growth, development and industrial policy; economic indicators
General Awareness > Economic indicators, base year revisions, statistical bodies
General Awareness > Indian Economy and statistical organisations
General Awareness > Current events in the economy
With reference to India's Five-Year Plans, which of the following statements is/are correct? 1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries. 2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power. 3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan. Select the correct answer using the code given below.
Answer: 1 and 2 only
Which of the following activities constitute real sector in the economy? 1. Farmers harvesting their crops 2. Textile mills converting raw cotton into fabrics 3. A commercial bank lending money to a trading company 4. A corporate body issuing Rupee Denominated Bonds overseas Select the correct answer using the code given below:
Answer: 1 and 2 only
Which of the following is NOT an example of an industrial district in India?
Answer: Darjeeling-Jalpaiguri region
Identify the group of districts that are NOT an example of industrial districts of India.
Answer: Darjeeling-Jalpaiguri region
Which of the following statements about light industries is correct?
Answer: Use light materials to make consumer goods
A reference year whose index value is set at 100, against which output in later periods is compared. The current IIP base year is 2022-23.
A grouping of IIP items by economic purpose - primary goods, capital goods, intermediate goods, infrastructure and construction goods, consumer durables and consumer non-durables.
Machinery and equipment used to produce other goods; a rise here is read as a signal of investment.
The National Industrial Classification grouping at which manufacturing is broken into 23 industry groups for IIP reporting.