MoSPI likely to include data on new activities in revised IIP series

Water collection, disposal likely to be included in series starting next Feb

The Ministry of Statistics and Programme Implementation is considering inclusion of data on activities like water collection, treatment & supply, sewerage, and waste collection, treatment & disposal activities in the new Index of Industrial Production (IIP) series, which is slated to be released in February next year, official sources told Business Standard.

 

The addition of these activities to the index is in line with the international recommendations received by the ministry with regard to IIP. Other such activities include quarrying of minor minerals and gas supply.

 

“If we compare with international recommendations on IIP, we are missing data on certain activities. We are exploring ways to cover some of these missing activities in the new base revision exercise, if they are important and have significant weight. Manufacturing categories, which are 23 in number, will remain unchanged though. These activities will be adjusted there,” the official said.

 

IIP, which is a composite indicator, measures the short-term changes in the volume of production of a basket of industrial products, is a key figure to measure the general level of industrial activity in the economy on a monthly basis, and forms a crucial input for compilation of Gross Value Added (GVA) of the manufacturing sector in Gross Domestic Product (GDP).

 

Currently, the ministry is in the works to revise and update the base year of the IIP to financial year 2022-23 (FY23) from FY12 at present. It is expected to release the first revised series in February 2026, along with the revised GDP series.

 

Paras Jasrai, senior economic analyst, India Ratings, says that while national accounts have data on gas supply, for other activities, there is currently no series. “Activities like waste collection, water treatment and sewerage are gaining prominence, as issues of climate change and sustainability gain traction in public policy. These are expected to grow and contribute significantly to the total GVA. Hence, including them is the need of the hour,” he added.

 

However, Ashish Kumar, distinguished fellow, Pahle India Foundation, says that collecting data for these activities is going to be difficult.

 

“For example, data for quarrying minor minerals is not captured by the Indian Bureau of Mines. The data is available only from state governments. The quality of data is very poor, as people have sanctioned rights for excavation, like in the case of sand. Therefore, no authentic figures of mining of minor minerals are available,” he added.

 

India follows the System of International Accounts, which is the internationally agreed standard set of recommendations on how to compile measures of economic activity. The SNA 2008 is the latest version of the international statistical standard for the national accounts, adopted by the United Nations Statistical Commission (UNSC) in 2009. Currently, the UNSC is in the works to update the SNA 2008.

 

The International Standard Industrial Classification of All Economic Activities, which is the international reference classification of productive activities and is considered part of the SNA, is also undergoing revision and the fifth edition is underway.

 

Beginning April 2025, the IIP data will be released on 28th of every month instead of the 12th of every month at present. This is to reduce the time lag in the release of the industrial output data from 42 days at present, thus the IIP data here on would be for the latest month.