Why in the News
India’s Industrial Output Growth, measured by the Index of Industrial Production (IIP), slowed to 4.1 percent in March 2026, marking a five month low. The slowdown is linked to weak performance in construction and consumer sectors and the emerging impact of the West Asia crisis.
What is Index of Industrial Production (IIP)?
- A composite indicator measuring short term changes in industrial output
- Released by the Ministry of Statistics and Programme Implementation
- Base year: 2011 to 12
- Published monthly
Components of IIP
- Primary Goods
- Capital Goods
- Intermediate Goods
- Infrastructure and Construction Goods
- Consumer Durables
- Consumer Non Durables
Key Highlights from Data
- IIP Growth (March 2026): 4.1 percent
- Manufacturing Growth: 4.3 percent
- Capital Goods Growth: 14.6 percent (29 month high)
- Infrastructure and Construction: 6.7 percent (slowed)
- Consumer Non Durables: 1.1 percent (weak demand)
- Core Sector Growth: -0.4 percent (contraction)
About Core Industries
- Eight core sectors account for about 40 percent of IIP
- Includes: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
| [2015] In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight? (a) Coal Production (b) Electricity generation (c) Fertilizer production (d) Steel production |
