IIP Grows 3.5% in July 2025: Components and Weights
Why in the news
July industrial growth hit a four-month best, just after Washington began penalty tariffs citing Russian oil purchases.
About IIP
- Composite gauge of volume changes in industrial output.
- Weights follow industrial GVA; the 8 core industries hold 40.27%.
- Use-based groups: primary, capital, intermediate, infrastructure/construction goods, consumer durables and non-durables.
| Sector | Weight |
|---|---|
| Manufacturing | 77.63% |
| Mining | 14.37% |
| Electricity | 7.99% |
Importance and limits
- Lead indicator for policymakers, RBI and GDP forecasts.
- Limits: volume only, monthly volatility, reporting lag.
Exam angle
- Compiler: NSO.
- Base year: 2011-12.
- Core industries weight: 40.27%.