According to the Index of Industrial Production (IIP), India’s industrial output increased by 5.1% year over year in May, a little increase from April’s 4.9% estimate under the updated 2022–2023 base. With a 9.9% increase, electricity and gas led the growth, followed by manufacturing, water supply, sewerage, and waste management, each of which saw a 5.5% increase. The only industry that lagged was mining and quarrying, which shrank by 1.6%. These numbers are more representative of the current economy because to the updated IIP series, which includes a new product basket, updated weights, and expanded sector coverage. However, cross-series comparisons with previous data should be done with caution.
Key conclusions (short points):
- May IIP growth: 5.1% year-on-year.
- April (revamped series base 2022-23): 4.9% — May shows modest acceleration.
- Electricity & gas supply: strongest growth at 9.9%.
- Manufacturing: solid contribution with 5.5% growth.
- Water supply, sewerage & waste management: also up 5.5%.
- Mining & quarrying: only sector contracting, down 1.6%.
- Methodology note: IIP rebased to 2022–23 with updated product basket, weights, and coverage.
Frequently Asked Question (FAQ):
Q1: What was the IIP growth in May?
A1: 5.1% year‑on‑year.
Q2: Is May better than April?
A2: Yes, marginally — May’s 5.1% is up from April’s 4.9% (both on the revamped 2022–23 base).
Q3: Which sector grew the most?
A3: Electricity and gas supply, which grew 9.9%.
Q4: Which sectors supported industrial growth?
A4: Manufacturing and water supply/sewerage/waste management, each up 5.5%.
Q5: Which sector fell?
A5: Mining and quarrying, down 1.6%.
Q6: Why does the IIP look different now?
A6: MOSPI rebased the IIP to 2022–23, updating the product basket, weights, and sector coverage to reflect current economic structure.
Q7: Should we compare these numbers with older IIP figures?
A7: Exercise caution — rebasing changes weights and composition, so direct comparisons with pre‑2022–23 series can be misleading.
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