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The Hindu Editorial • July 01, 2026 • Read Original

Data doubts: On the latest IIP dataset

The latest IIP dataset raises more questions than it answers

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The Hindu Read Original
8 min read

Analysis of editorial from The Hindu newspaper on July 01, 2026

Data doubts: On the latest IIP dataset

The latest IIP dataset raises more questions than it answers

Index of Industrial ProductionIIPMoSPIProducer Price IndexIndian EconomyManufacturing Sector
Sentences
Sentence 1 of 16
English Original

India’s latest industrial growth figures show that, contrary to global trends and overall perception, the country’s industrial output is getting stronger.

Simple Present S + V + O Main Clause + Subordinate Clause Complex Sentence
Phrase Breakdown
Subject Who/What
India’s latest industrial growth figures
The most recent statistics about the expansion of industries in India
Verb What is happening
show
indicate or demonstrate
Object What receives action
that, contrary to global trends and overall perception, the country’s industrial output is getting stronger
that India’s factory production is improving, even though global markets are slowing down and people believed India was also struggling
Sentence 2 of 16
English Original

Notably, the data show a quick bounce-back in industrial performance after the initial hit from the West Asia crisis.

Simple Present Adjunct + S + V + O + Adjunct Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
Notably
Importantly / worthy of attention
Subject Who/What
the data
The collected statistics or figures
Verb What is happening
show
indicate or display
Object What receives action
a quick bounce-back in industrial performance
a fast recovery in how well factories and manufacturing sectors are producing goods
Adjunct Additional info
after the initial hit from the West Asia crisis
following the first negative impact caused by the geopolitical conflict in the Middle East
Context and Background
West Asia Crisis of 2026

The West Asia crisis refers to the escalation of geopolitical conflict in the Middle East (specifically the Iran war) starting in late February 2026. This conflict led to the closure of the Strait of Hormuz, a critical transit route for 20% of global oil and liquefied natural gas (LNG), resulting in oil price spikes and supply disruptions that severely affected import-dependent countries like India.

Sentence 3 of 16
English Original

However, the new data also raise some important concerns about the composition of the growth, the systems behind the recent data upgrades, and the need for further improvements.

Simple Present Adjunct + S + Adjunct + V + O Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
However
But / on the other hand
Subject Who/What
the new data
The recently released economic statistics
Adjunct Additional info
also
in addition / additionally
Verb What is happening
raise
bring up / cause to appear
Object What receives action
some important concerns about the composition of the growth, the systems behind the recent data upgrades, and the need for further improvements
doubts regarding what exactly is growing in the economy, how the statistics were updated, and what changes still need to be made to make data reliable
Sentence 4 of 16
English Original

Growth in the Index of Industrial Production hit a five-month high of 5.1% in May 2026, up from the 4.9% growth seen in April, which itself was a substantial improvement over the performance in March (the first full month after the West Asia crisis began).

Simple Past S + V + O + Adjunct Main Clause + Subordinate Relative Clause Complex Sentence
Phrase Breakdown
Subject Who/What
Growth in the Index of Industrial Production
The increase in the index that measures the output of India’s industrial sectors
Verb What is happening
hit
reached
Object What receives action
a five-month high of 5.1% in May 2026
the highest growth rate recorded in the last five months, which was 5.1 percent in May 2026
Adjunct Additional info
up from the 4.9% growth seen in April, which itself was a substantial improvement over the performance in March (the first full month after the West Asia crisis began)
an increase compared to the 4.9 percent growth in April, which was already much better than the output in March, which was the first full month of the Middle East conflict
Context and Background
Index of Industrial Production (IIP)

The Index of Industrial Production (IIP) is a key macroeconomic indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period. It is compiled and published monthly by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). The index consists of three broad sectors: Mining (14.37%), Manufacturing (77.63%), and Electricity (7.99%), with 2011-12 as the current base year.

Sentence 5 of 16
English Original

Within this, the manufacturing sector grew at a relatively robust 5.5% in May, albeit slower than in April.

Simple Past Adjunct + S + V + Adjunct + Adjunct Main Clause Simple Sentence
Phrase Breakdown
Adjunct Additional info
Within this
Inside this overall Index of Industrial Production growth
Subject Who/What
the manufacturing sector
the part of the economy that makes goods in factories (like cars, phones, clothes)
Verb What is happening
grew
increased in production value or volume
Adjunct Additional info
at a relatively robust 5.5% in May
by a fairly strong rate of 5.5 percent during the month of May
Adjunct Additional info
albeit slower than in April
although this growth rate was not as fast as the growth in April
Sentence 6 of 16
English Original

One view is that this is due to a revival in domestic consumption, since the consumer durables and non-durables sectors also grew at multi-month highs.

Simple Present & Simple Past S + V + C Main Clause + Subordinate Noun Clause + Subordinate Adverbial Clause Complex Sentence
Phrase Breakdown
Subject Who/What
One view
One perspective or opinion
Verb What is happening
is
exists to be
Complement Completes meaning
that this is due to a revival in domestic consumption, since the consumer durables and non-durables sectors also grew at multi-month highs
that the industrial growth is caused by people in India buying more goods again, because companies making long-lasting items (like electronics) and immediate-use items (like food) also grew at their highest rates in months
Sentence 7 of 16
English Original

Consumer durables, especially, have done well in April and May.

Present Perfect S + Adjunct + V + Adjunct + Adjunct Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
Consumer durables
Long-lasting household items purchased by consumers (like appliances or electronics)
Adjunct Additional info
especially
particularly
Verb What is happening
have done
performed or completed actions
Adjunct Additional info
well
in a satisfactory or successful manner
Adjunct Additional info
in April and May
during the two-month period of April and May
Sentence 8 of 16
English Original

However, the contrary argument is that domestic demand is in fact not doing well, and it is export growth that is leading to higher production.

Simple Present & Present Continuous Adjunct + S + V + C Main Clause + Subordinate Clauses Complex Sentence
Phrase Breakdown
Adjunct Additional info
However
But / on the other hand
Subject Who/What
the contrary argument
the opposite point of view or claim
Verb What is happening
is
exists as
Complement Completes meaning
that domestic demand is in fact not doing well, and it is export growth that is leading to higher production
that the local buying power of citizens is actually weak, and it is the goods sold to other countries that are causing factories to produce more
Sentence 9 of 16
English Original

This is bolstered by the fact that GST revenues from domestic transactions have grown slower over the last six months than in 2025-26 and the year before that.

Simple Present (Passive) & Present Perfect S + V + Adjunct Main Clause + Subordinate Appositive Clause Complex Sentence
Phrase Breakdown
Subject Who/What
This
This argument that domestic demand is weak
Verb What is happening
is bolstered
is supported, strengthened, or backed up
Adjunct Additional info
by the fact that GST revenues from domestic transactions have grown slower over the last six months than in 2025-26 and the year before that
by the evidence showing that tax collections on sales inside India increased at a slower rate in the last six months compared to the financial year 2025-26 and the year prior to that
Sentence 10 of 16
English Original

Merchandise exports, on the other hand, hit a four-year high in April followed by an all-time high in May.

Simple Past S + Adjunct + V + O + Adjunct Main Clause + Elliptical Participial Clause Simple Sentence
Phrase Breakdown
Subject Who/What
Merchandise exports
The physical goods sold and shipped to other countries
Adjunct Additional info
on the other hand
in contrast / from another perspective
Verb What is happening
hit
reached
Object What receives action
a four-year high in April
the highest export level seen in the past four years during the month of April
Adjunct Additional info
followed by an all-time high in May
which was then succeeded by the highest growth rate ever recorded in history during May
Sentence 11 of 16
English Original

It would certainly be welcome if India’s industry has global demand to fill, but the fact that more of this demand is not coming from within the country is a cause for concern.

Conditional & Simple Present S1 + V1 + C1 + Adjunct1 + Conjunction + S2 + V2 + C2 Coordinate Main Clauses + Subordinate Clauses Compound-Complex Sentence
Phrase Breakdown
Subject Who/What
It
The scenario of India’s industry having global demand
Verb What is happening
would certainly be
would definitely exist to be
Complement Completes meaning
welcome
very good or pleasing
Adjunct Additional info
if India’s industry has global demand to fill
in the event that factories in India have orders from consumers around the world to supply
Subject Who/What
the fact that more of this demand is not coming from within the country
the reality that a larger share of consumer purchasing is not happening inside India
Verb What is happening
is
exists as
Complement Completes meaning
a cause for concern
a reason to be worried or anxious
Sentence 12 of 16
English Original

The economy is already hostage to world events.

Simple Present S + V + Adjunct + C Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
The economy
The financial and production system of India
Verb What is happening
is
exists to be
Adjunct Additional info
already
before this time / even now
Complement Completes meaning
hostage to world events
completely controlled by and dependent on international geopolitical and economic situations
Sentence 13 of 16
English Original

The May IIP data were also accompanied by a note from the Ministry of Statistics and Programme Implementation (MoSPI) stating that it had made a major change to the methodology for computing growth for some sectors.

Past Passive & Past Perfect S + V(aux) + Adjunct1 + V(main) + Adjunct2 Main Clause + Subordinate Clauses Complex Sentence
Phrase Breakdown
Subject Who/What
The May IIP data
The industrial production statistics released for the month of May
Verb What is happening
were accompanied
were sent or presented together with
Adjunct Additional info
also
additionally / in addition
Adjunct Additional info
by a note from the Ministry of Statistics and Programme Implementation (MoSPI) stating that it had made a major change to the methodology for computing growth for some sectors
along with an official message from MoSPI explaining that they had significantly altered the calculation rules used to measure growth in certain industrial groups
Context and Background
Ministry of Statistics and Programme Implementation (MoSPI)

The Ministry of Statistics and Programme Implementation (MoSPI) is a ministry of the Government of India concerned with coverage and quality aspects of statistics released. The surveys conducted by the Ministry are based on scientific sampling methods. The Ministry has two wings, one relating to Statistics (National Statistical Office - NSO) and the other Programme Implementation.

Sentence 14 of 16
English Original

It had abandoned the Wholesale Price Index as its chosen deflator to estimate the value of production in favour of the new Producer Price Index.

Past Perfect S + V + O + Adjunct + Adjunct Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
It
MoSPI (Ministry of Statistics and Programme Implementation)
Verb What is happening
had abandoned
had given up or stopped using
Object What receives action
the Wholesale Price Index
the index measuring price changes of goods sold in bulk at the wholesale level
Adjunct Additional info
as its chosen deflator to estimate the value of production
as the tool selected to adjust nominal production value for inflation so real output can be measured
Adjunct Additional info
in favour of the new Producer Price Index
preferring and switching to the new index that measures price changes from the seller’s perspective
Context and Background
WPI vs. PPI as a Deflator

The Wholesale Price Index (WPI) tracks inflation at the wholesale level, but it includes trade margins, transport costs, and import prices. The Producer Price Index (PPI) measures inflation from the perspective of the producer, focusing on factory-gate prices. In national accounting, when estimating the real volume of industrial production (IIP), using the PPI as a deflator is globally preferred because it isolates price movements of domestic production without the distortions of margins and transport costs that are present in WPI.

Sentence 15 of 16
English Original

This is a more accurate approach.

Simple Present S + V + C Main Clause Simple Sentence
Phrase Breakdown
Subject Who/What
This
This change in methodology (using PPI instead of WPI)
Verb What is happening
is
exists as
Complement Completes meaning
a more accurate approach
a better and more correct method of calculation
Sentence 16 of 16
English Original

But it is important that policy changes are made with clarity and that the data on which they are based is correct.

Simple Present Adjunct + S1 + V1 + C1 + S2(extraposed) Main Clause + Subordinate Clauses Complex Sentence
Phrase Breakdown
Adjunct Additional info
But
However / on the contrary
Subject Who/What
it
the overall requirement described in the sentence
Verb What is happening
is
exists to be
Complement Completes meaning
important
necessary or significant
Subject Who/What
that policy changes are made with clarity and that the data on which they are based is correct
that government decisions are changed in an easy-to-understand way, and the numbers used to make those decisions are accurate
Sentence 1 of 16
Sentence 1 of 16
India’s latest industrial growth figures show that, contrary to global trends and overall perception, the country’s industrial output is getting stronger.
Phrase Breakdown
Subject
India’s latest industrial growth figures
The most recent statistics about the expansion of industries in India
Verb
show
indicate or demonstrate
Object
that, contrary to global trends and overall perception, the country’s industrial output is getting stronger
that India’s factory production is improving, even though global markets are slowing down and people believed India was also struggling
Sentence 2 of 16
Notably, the data show a quick bounce-back in industrial performance after the initial hit from the West Asia crisis.
Phrase Breakdown
Adjunct
Notably
Importantly / worthy of attention
Subject
the data
The collected statistics or figures
Verb
show
indicate or display
Object
a quick bounce-back in industrial performance
a fast recovery in how well factories and manufacturing sectors are producing goods
Adjunct
after the initial hit from the West Asia crisis
following the first negative impact caused by the geopolitical conflict in the Middle East
Sentence 3 of 16
However, the new data also raise some important concerns about the composition of the growth, the systems behind the recent data upgrades, and the need for further improvements.
Phrase Breakdown
Adjunct
However
But / on the other hand
Subject
the new data
The recently released economic statistics
Adjunct
also
in addition / additionally
Verb
raise
bring up / cause to appear
Object
some important concerns about the composition of the growth, the systems behind the recent data upgrades, and the need for further improvements
doubts regarding what exactly is growing in the economy, how the statistics were updated, and what changes still need to be made to make data reliable
Sentence 4 of 16
Growth in the Index of Industrial Production hit a five-month high of 5.1% in May 2026, up from the 4.9% growth seen in April, which itself was a substantial improvement over the performance in March (the first full month after the West Asia crisis began).
Phrase Breakdown
Subject
Growth in the Index of Industrial Production
The increase in the index that measures the output of India’s industrial sectors
Verb
hit
reached
Object
a five-month high of 5.1% in May 2026
the highest growth rate recorded in the last five months, which was 5.1 percent in May 2026
Adjunct
up from the 4.9% growth seen in April, which itself was a substantial improvement over the performance in March (the first full month after the West Asia crisis began)
an increase compared to the 4.9 percent growth in April, which was already much better than the output in March, which was the first full month of the Middle East conflict
Sentence 5 of 16
Within this, the manufacturing sector grew at a relatively robust 5.5% in May, albeit slower than in April.
Phrase Breakdown
Adjunct
Within this
Inside this overall Index of Industrial Production growth
Subject
the manufacturing sector
the part of the economy that makes goods in factories (like cars, phones, clothes)
Verb
grew
increased in production value or volume
Adjunct
at a relatively robust 5.5% in May
by a fairly strong rate of 5.5 percent during the month of May
Adjunct
albeit slower than in April
although this growth rate was not as fast as the growth in April
Sentence 6 of 16
One view is that this is due to a revival in domestic consumption, since the consumer durables and non-durables sectors also grew at multi-month highs.
Phrase Breakdown
Subject
One view
One perspective or opinion
Verb
is
exists to be
Complement
that this is due to a revival in domestic consumption, since the consumer durables and non-durables sectors also grew at multi-month highs
that the industrial growth is caused by people in India buying more goods again, because companies making long-lasting items (like electronics) and immediate-use items (like food) also grew at their highest rates in months
Sentence 7 of 16
Consumer durables, especially, have done well in April and May.
Phrase Breakdown
Subject
Consumer durables
Long-lasting household items purchased by consumers (like appliances or electronics)
Adjunct
especially
particularly
Verb
have done
performed or completed actions
Adjunct
well
in a satisfactory or successful manner
Adjunct
in April and May
during the two-month period of April and May
Sentence 8 of 16
However, the contrary argument is that domestic demand is in fact not doing well, and it is export growth that is leading to higher production.
Phrase Breakdown
Adjunct
However
But / on the other hand
Subject
the contrary argument
the opposite point of view or claim
Verb
is
exists as
Complement
that domestic demand is in fact not doing well, and it is export growth that is leading to higher production
that the local buying power of citizens is actually weak, and it is the goods sold to other countries that are causing factories to produce more
Sentence 9 of 16
This is bolstered by the fact that GST revenues from domestic transactions have grown slower over the last six months than in 2025-26 and the year before that.
Phrase Breakdown
Subject
This
This argument that domestic demand is weak
Verb
is bolstered
is supported, strengthened, or backed up
Adjunct
by the fact that GST revenues from domestic transactions have grown slower over the last six months than in 2025-26 and the year before that
by the evidence showing that tax collections on sales inside India increased at a slower rate in the last six months compared to the financial year 2025-26 and the year prior to that
Sentence 10 of 16
Merchandise exports, on the other hand, hit a four-year high in April followed by an all-time high in May.
Phrase Breakdown
Subject
Merchandise exports
The physical goods sold and shipped to other countries
Adjunct
on the other hand
in contrast / from another perspective
Verb
hit
reached
Object
a four-year high in April
the highest export level seen in the past four years during the month of April
Adjunct
followed by an all-time high in May
which was then succeeded by the highest growth rate ever recorded in history during May
Sentence 11 of 16
It would certainly be welcome if India’s industry has global demand to fill, but the fact that more of this demand is not coming from within the country is a cause for concern.
Phrase Breakdown
Subject
It
The scenario of India’s industry having global demand
Verb
would certainly be
would definitely exist to be
Complement
welcome
very good or pleasing
Adjunct
if India’s industry has global demand to fill
in the event that factories in India have orders from consumers around the world to supply
Subject
the fact that more of this demand is not coming from within the country
the reality that a larger share of consumer purchasing is not happening inside India
Verb
is
exists as
Complement
a cause for concern
a reason to be worried or anxious
Sentence 12 of 16
The economy is already hostage to world events.
Phrase Breakdown
Subject
The economy
The financial and production system of India
Verb
is
exists to be
Adjunct
already
before this time / even now
Complement
hostage to world events
completely controlled by and dependent on international geopolitical and economic situations
Sentence 13 of 16
The May IIP data were also accompanied by a note from the Ministry of Statistics and Programme Implementation (MoSPI) stating that it had made a major change to the methodology for computing growth for some sectors.
Phrase Breakdown
Subject
The May IIP data
The industrial production statistics released for the month of May
Verb
were accompanied
were sent or presented together with
Adjunct
also
additionally / in addition
Adjunct
by a note from the Ministry of Statistics and Programme Implementation (MoSPI) stating that it had made a major change to the methodology for computing growth for some sectors
along with an official message from MoSPI explaining that they had significantly altered the calculation rules used to measure growth in certain industrial groups
Sentence 14 of 16
It had abandoned the Wholesale Price Index as its chosen deflator to estimate the value of production in favour of the new Producer Price Index.
Phrase Breakdown
Subject
It
MoSPI (Ministry of Statistics and Programme Implementation)
Verb
had abandoned
had given up or stopped using
Object
the Wholesale Price Index
the index measuring price changes of goods sold in bulk at the wholesale level
Adjunct
as its chosen deflator to estimate the value of production
as the tool selected to adjust nominal production value for inflation so real output can be measured
Adjunct
in favour of the new Producer Price Index
preferring and switching to the new index that measures price changes from the seller’s perspective
Sentence 15 of 16
This is a more accurate approach.
Phrase Breakdown
Subject
This
This change in methodology (using PPI instead of WPI)
Verb
is
exists as
Complement
a more accurate approach
a better and more correct method of calculation
Sentence 16 of 16
But it is important that policy changes are made with clarity and that the data on which they are based is correct.
Phrase Breakdown
Adjunct
But
However / on the contrary
Subject
it
the overall requirement described in the sentence
Verb
is
exists to be
Complement
important
necessary or significant
Subject
that policy changes are made with clarity and that the data on which they are based is correct
that government decisions are changed in an easy-to-understand way, and the numbers used to make those decisions are accurate

Reading Comprehension

Practice questions based on this editorial

Reading Comprehension - Data doubts: On the latest IIP dataset

Practice reading comprehension questions based on the editorial about the Index of Industrial Production (IIP) and MoSPI's methodology change.

5 Questions Passing: 70%

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