MoSPI releases Discussion Paper 2.0 on adopting a chain-based Index of Industrial Production
The Ministry of Statistics and Programme Implementation released Discussion Paper 2.0 on 13 January 2026, proposing a chain-based method for compiling the Index of Industrial Production (IIP) as part of its base revision.
Summary
The Index of Industrial Production (IIP) may move from a fixed-base to a chain-based method under a proposal in Discussion Paper 2.0, released by the Ministry of Statistics and Programme Implementation (MoSPI) on 13 January 2026 as part of the IIP base revision. The IIP has traditionally used a fixed-base Laspeyres framework in which weights stay unchanged until the next base revision, which makes them less relevant as industries grow, shrink or emerge. A chain-based index would update weights annually to reflect the current production structure. MoSPI has invited comments from experts, ministries, states and other stakeholders.
Key facts
- Document
- Discussion Paper 2.0: Adoption of Chain-Based IIP
- Released by
- MoSPI, 13 January 2026
- Current method
- Fixed-base Laspeyres framework
- Proposed method
- Chain-based index with annually updated weights
- Context
- IIP base revision; stakeholder comments invited
Practice MCQs 2 questions
Which framework has traditionally been used to compile India's Index of Industrial Production (IIP)?
Show answer
Correct answer: D — Fixed-base Laspeyres framework
PIB (MoSPI): the IIP has traditionally been compiled using a fixed-base Laspeyres framework.
What is the main advantage of the chain-based IIP proposed in MoSPI's Discussion Paper 2.0 (January 2026)?
Show answer
Correct answer: B — It updates weights annually to reflect the current production structure
PIB (MoSPI): the chain-based method allows weights to change annually, correctly reflecting a more recent production structure.