IIP Overhaul: MoSPI Proposes Chain-Based Index for New Industries

• MoSPI suggests transitioning to a chain-based method for compiling the Index of Industrial Production (IIP).
• The base revision exercise aims to review methodologies, explore new data sources, and incorporate changes after consultations.
• Traditional fixed-base Laspeyres framework uses unchanging weights, becoming less relevant with industry shifts.
• Chain-based IIP offers better accuracy by reflecting recent production structures through annual weight adjustments.
• MoSPI has released a Discussion Paper 2.0 and invites comments by January 25, 2026, from various stakeholders.

Why It Matters: MoSPI proposes a chain-based IIP to accurately track industrial changes and invites public feedback.