From MSME to Big companies, it is mandatory to report their actual production and service details annually.The value of production and services provided by companies in their respective districts should be collected through the Regional Statistical Offices managed by the State Governments.Just as a company files its income and tax returns, it is mandatory for the government to report its production data to the government. The central and state governments should conduct unannounced inspections to verify the authenticity of the data.The government should advise companies that the accuracy of the data required for calculating the "Industrial Index Production" will lead to the government providing the necessary facilities and incentives to carry out routine and strategic production.The government should keep the data confidential so that third parties outside the company cannot request it.

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The Ministry of Statistics and Programme Implementation (MoSPI) is revising the base year of the IIP to 2022–23. As part of this, a new methodology for substituting factories in the data sample is proposed to ensure the index remains accurate and representative of current industrial activity.

The Ministry of Statistics and Programme Implementation (MoSPI) is revising the base year of the IIP to 2022–23. As part of this, a new methodology for substituting factories in the data sample is proposed to ensure the index remains accurate and representative of current industrial activity.

The Index of Industrial Production (IIP) is a key monthly indicator that shows how much goods Indian factories are producing and is used to track industrial growth.•At present, the IIP is based on a fixed list of factories chosen in the base year; over time some of these factories close or change what they manufacture, which can make the index less accurate .What “substitution of factories” is“Substitution” means removing factories that have permanently closed or changed their production line and replacing them with similar factories that still produce the same item or item group, so that the time‑series of the IIP remains continuous and representative.The proposed method generally triggers substitution when a factory shows zero or no production for three consecutive months and this is confirmed as permanent closure or a permanent shift in product line by the concerned agency.At present, the continuation of permanently closed or non‑reporting units in the IIP sample leads to excessiv.

Need for a Clear, Transparent Substitution Protocol Right now, substitution feels a bit like musical chairs—everyone gets the vibe, but no one knows who’s actually supposed to sit. The paper should outline a standardized, time-bound workflow for when a factory shuts, scales down, shifts location, merges, or becomes untraceable. A transparent, rule-based decision tree will not only boost credibility but also reduce operational bottlenecks. 2. Strengthen the Criteria for Replacement Units The current approach sometimes swaps in factories that are “kind of similar,” but in data terms, “kind of” is basically crime. Substitution should prioritize: Production continuity (product + scale) Technological comparability Market relevance Longevity and reporting capacity This ensures the replacement unit doesn’t distort trends or artificially inflate/deflate growth signals. 3. Introduce a Dynamic, Digital Directory of Eligible Units Let’s ditch the old-school dependency on manual lists.

In the natural stone sector, we’re already seeing significant changes in demand, pricing, and export preferences. At Petros® Stone LLP, we actively document these trends through detailed resources such as: Indian White Marble Price Guide: https://petrosstone.com/indian-white-marble-price/ Granite Price Insights & Buying Guide: https://petrosstone.com/granite-price/ Complete Threshold & Fabrication Knowledge Hub: https://petrosstone.com/interior-door-thresholds-marble-granite/

This is a very welcome move by NSO and MoSPI. A timely base revision of the Index of Industrial Production is crucial to accurately capture structural changes in sectors like construction materials, mining and manufacturing — especially for industries such as natural stone, where product-mix, value addition and export orientation have all evolved significantly over the past decade. At Petros® Stone LLP ( petrosstone.com ), we see this shift on the ground through changing demand for granite, marble and engineered stone in both domestic and export markets. That’s why we’ve been focusing on data-backed content for our own ecosystem — for example, our detailed guide on Indian white marble prices (petrosstone.com/indian-white-marble-price ) and our granite price insights (petrosstone.com/granite-price ) help builders, architects and buyers make informed decisions. Better-aligned official indices and ground-level price/transparency efforts from industry players.

3. Rotate Sample Units More Frequently Instead of long intervals between substitutions, the sample list of factories should be refreshed more frequently. This will remove closed or outdated units and include newly operational ones, improving the representativeness of the index. 4. Strengthen Coordination with State Governments State industrial departments maintain updated lists of active factories. A stronger collaboration with state-level authorities can help verify operational status quickly and reduce outdated sampling. 5. Create Awareness for MSMEs Many MSMEs are now major contributors to industrial growth. Awareness programs should be conducted to train MSMEs in proper reporting methods so that their data can be used reliably in the IIP. The Discussion Paper is a positive step toward a more accurate and modern IIP. These improvements can further support evidence-based policymaking and reflect India's fast-evolving industrial sector more effectively.

After going through the concept, I would like to offer a few practical suggestions: 1. Ensure Representation of New and Emerging Industries The industrial landscape has changed significantly in the last decade. Along with traditional factories, the IIP basket should include units from new-age sectors like electric vehicles, semiconductors, solar manufacturing, battery production, drones, electronics assembly, and green technologies. This will make the index more relevant for policy decisions. 2. Use Digital Tools for Real-Time Data Collection To improve accuracy, factories can be encouraged to submit production data through a standard digital portal or mobile interface. Automated reminders and validation checks can reduce errors and delays.