“Modi govt’s bold overhauling of IIP ensures more accurate measurement of industrial growth”, The Pamphlet, November 15, 2025
“In a key reform to bring India’s critical economic indicators in tune with the times, the MoSPI proposed a long-overdue revamp of the base year for calculating the Index of Industrial Production (IIP). The latest Modi government reform seeks to purge the industrial growth data of factories that have closed down for good, replacing them with working units to better reflect the country’s true manufacturing strength.
The IIP has been the government’s key monthly measure of the health of the industrial sector in India, apart from the Consumer Price Index, or retail inflation. However, a silent defect persisted: almost 9 percent of the base of the IIP now consists of factories that have either closed down or changed their lines of production, distorting the growth numbers.
Realizing this challenge, the government is trying to bring in more transparency and accuracy through MoSPI’s latest discussion paper. As per the new methodology, factories reporting zero output for three consecutive months will have to be verified for their operational status. Units confirmed to be closed or relocated to major production sites will be replaced by active and comparable factories, thereby ensuring real-time reflection of industrial realities through IIP…….”
Read full article at thepamphlet.in
