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New norms to substitute closed factories for IIP
Financial Express Delhi
|November 12, 2025
PRODUCTION REJIG
TO MAKE THE Index of Industrial Production (IIP) more robust and policy-relevant, the government on Tuesday proposed a new methodology for substitution of factories which have been permanently closed or have changed the production line in the new series of IIP.
The new series, scheduled to be released on May 28 next year, will have 2022-23 as base year. The current IP series has 2011-12 as the base year.
The Ministry of Statistics and Programme Implementation (MoSPI) released a discussion paper for the substitution of factories inviting views and suggestions from all stakeholders.
According to the paper, the substitution process will be triggered if a factory reports zero production or if the production data is not reported by the factory for three consecutive months.
The substitution will be implemented once the closure/change in production-line is officially confirmed by the source agency.
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