India's Index of Industrial Production records growth of 5.1% in May 2026

📌 Summary:

• India's Index of Industrial Production (IIP) grew 5.1% year-on-year in May 2026
• Growth driven by 5.5% rise in Manufacturing and a strong 9.9% growth in Electricity & Gas Supply
• MoSPI has adopted Output Producer Price Index (Output PPI) as the deflator in place of WPI for item groups whose output is collected in value terms
• This change affects 234 of the 463 item groups in the IIP basket — 36.02% of total index weight
• The revised IIP 2022-23 series (with Output PPI) supersedes the earlier WPI-based series released on 1st June 2026
• DPIIT released the Output PPI series (base year 2022-23) on 15th June 2026

🎯 UPSC Relevance: GS3 (Indian Economy) — industrial growth indicators, methodology of national statistics, and the shift from WPI to Output PPI as a deflator.

📝 Prelims Facts:

• IIP base year revised to 2022-23
• IIP is released by MoSPI (National Statistical Office)
• Three sectoral components: Manufacturing, Mining, Electricity
• Output PPI now the deflator for 234 of 463 item groups (36.02% weight)

🔑 Key Term: Output PPI (Producer Price Index) — measures the average change in selling prices received by domestic producers for their output; now used as a deflator to convert value-based IIP data into volume terms.