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Industrial Growth — IIP [Prelims Bits]

02 Sep 2026

Tags: Prelims   Economic and Social Development

Source: The Hindu

Context: India’s Index of Industrial Production (IIP) growth slowed to 6.7% in July 2026, from 8.8% in June; June’s earlier estimate of 7.3% was revised upward to 8.8%.

Prelims Facts

  • IIP: Measures changes in the volume of industrial production; released by Ministry of Statistics & Programme Implementation (MoSPI).
  • July 2026 growth: 6.7%; second-highest growth since December 2025.
  • Growth was supported mainly by manufacturing, electricity and gas supply.
  • Manufacturing: grew 7.3% in July 2026 (June: 9.5%; July 2025: 5.1%).
  • Manufacturing growth was driven by engineering goods, automobiles, electronics, and plastic & rubber products.
  • Important: IIP broadly covers Mining, Manufacturing and Electricity sectors; Manufacturing carries the highest weight.

Prelims Question

Q1. Consider the following statements regarding the Index of Industrial Production (IIP):

  1. It measures changes in the volume of industrial production.
  2. Manufacturing has the highest weight among the broad sectors covered by the IIP.
  3. Changes in the IIP directly measure changes in the monetary value of industrial output.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)

Explanation: IIP measures changes in the volume of industrial production, not its monetary value. It covers Mining, Manufacturing and Electricity, with manufacturing carrying the largest weight.

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