IIP grows 5.1% in May 2026; MoSPI switches to Output PPI as deflator
India's Index of Industrial Production grew 5.1% year-on-year in May 2026, MoSPI said on 29 June 2026, as it re-released the 2022-23 base IIP series using the Output Producer Price Index in place of WPI as deflator.
Summary
India's Index of Industrial Production (IIP) recorded 5.1% year-on-year growth in May 2026, the Ministry of Statistics and Programme Implementation (MoSPI) said on 29 June 2026, supported by 5.5% growth in manufacturing and 9.9% in electricity and gas supply. MoSPI also revised the entire IIP series with base year 2022-23 to use the Output Producer Price Index (Output PPI), released by DPIIT on 15 June 2026, as the deflator in place of the Wholesale Price Index (WPI). The change affects 234 of the 463 item groups in the IIP basket, which are compiled from value-based data and carry 36.02% of the index weight, and supersedes the WPI-based series released on 1 June 2026.
Key facts
- May 2026 IIP growth
- 5.1% (y-o-y)
- Manufacturing
- 5.5%
- Electricity & gas supply
- 9.9%
- Base year
- 2022-23
- New deflator
- Output PPI (DPIIT, released 15 June 2026) replacing WPI
- Coverage of change
- 234 of 463 item groups; 36.02% of weight
Practice MCQs 3 questions
According to MoSPI's release of 29 June 2026, India's Index of Industrial Production grew by how much year-on-year in May 2026?
Show answer
Correct answer: D — 5.1%
IIP grew 5.1% in May 2026. The 5.5% figure is the growth of the manufacturing sector.
Which sector recorded 9.9% growth in the IIP for May 2026?
Show answer
Correct answer: B — Electricity and gas supply
Electricity and gas supply grew 9.9% in May 2026, while manufacturing grew 5.5%.
In the revised IIP series (base 2022-23) released in June 2026, which index replaced the Wholesale Price Index as the deflator for item groups reported in value terms?
Show answer
Correct answer: A — Output Producer Price Index
MoSPI adopted the Output Producer Price Index, released by DPIIT with base 2022-23 on 15 June 2026, in place of WPI for 234 of 463 item groups (36.02% of weight).