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Govt proposes adoption of chain-based IIP
Financial Express Kolkata
|January 14, 2026
FE BUREAU New Delhi, January 13
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THE MINISTRY OF Statistics and Programme Implementation (MoSPI) has proposed a major overhaul in the Index of Industrial Production (IIP), shifting from the current fixed-base Laspeyres framework to a modern chain-linked methodology that updates weights annually.
The proposal, detailed in Discussion Paper 2.0 released on Tuesday, aims to address growing concerns that the existing IIP has become outdated due to significant changes in the structure of the industry over the past 14 years.
The ministry is in the process of revising the base year of the IIP to 2022-23 from current 2011-12, along with the base years of gross domestic product and Consumer Price Index.
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