What is the Government's New Discussion Paper on Seasonal Adjustment of IIP?
Synopsis
The Indian government has launched a discussion paper on the seasonal adjustment of the Index of Industrial Production (IIP), inviting input from various stakeholders. This initiative aims to enhance the accuracy of economic indicators amid rising demand for seasonally adjusted data.
Key Takeaways
The government has released a discussion paper on the IIP's seasonal adjustment.
The MoSPI is revisiting methodologies and data sources.
Stakeholder feedback is crucial for refining the proposed methodology.
India's industrial production grew by 7.8% in December.
The manufacturing sector was a significant contributor to this growth.
New Delhi, Jan 28 (NationPress) On Wednesday, the government unveiled a discussion paper detailing the proposed methodology for the seasonal adjustment of the Index of Industrial Production (IIP).
The Ministry of Statistics and Programme Implementation (MoSPI) is currently engaged in a base revision exercise for the IIP.
This initiative involves a thorough re-evaluation of methodologies, the exploration of new data sources, and the incorporation of updates following extensive consultations with experts, academicians, users, and various stakeholders.
The ministry noted that while industrial production is heavily affected by seasonality and calendar effects, India has yet to publish a seasonally adjusted IIP series, leaving users to conduct such analyses using their preferred methods and tools.
In response to the growing demand for a seasonally adjusted IIP, MoSPI has produced 'Discussion Paper 3.0: Seasonal Adjustment of Index of Industrial Production', which outlines the proposed methodology for this adjustment, the ministry stated.
The ministry has welcomed feedback and comments from experts, academicians, central government ministries, state governments, financial institutions, and other stakeholders regarding the proposed methodology.
“Feedback and suggestions are requested by February 12, 2026,” it added.
In the meantime, India's industrial production experienced a remarkable surge of 7.8 percent in December, marking its highest level in over two years, propelled by robust growth across the manufacturing, mining, and electricity sectors.
The manufacturing sector achieved an 8.1 percent growth in December, with 16 out of 23 industry groups reporting positive growth during the month. The leading contributors included the production of basic metals, motor vehicles, pharmaceuticals, and chemicals.
Additionally, the mining sector rebounded with a 6.8 percent growth in December compared to the same month in the previous year, while the electricity sector also demonstrated solid growth of 6.3 percent.
Point of View
I believe this initiative by the MoSPI to seek feedback on the methodology for the seasonal adjustment of IIP is a crucial step towards improving economic transparency and accuracy. By engaging with experts and stakeholders, the government is taking a commendable approach to refine our industrial data, which is essential for informed decision-making.
NationPress
20 Jun 2026
Frequently Asked Questions
What is the purpose of the discussion paper released by the government?
The discussion paper aims to outline the proposed methodology for the seasonal adjustment of the Index of Industrial Production (IIP) and invites stakeholder feedback.
Who is invited to provide comments on the discussion paper?
Experts, academicians, central government ministries, state governments, financial institutions, and other stakeholders are encouraged to share their views.
What is the deadline for submitting comments on the discussion paper?
Comments and suggestions must be submitted by February 12, 2026.
How much did India's industrial production grow in December?
India's industrial production surged by 7.8 percent in December, reaching its highest level in over two years.
Which sectors contributed to the growth in industrial production?
The manufacturing, mining, and electricity sectors all contributed to the growth in industrial production.
