Kautilya

The May 2026 data is important because it comes under the new IIP series with base year 2022–23. The release also marks a methodological transition in the compilation of industrial production data, with MoSPI adopting the Output Producer Price Index as the deflator in place of the Wholesale Price Index for item groups where production is reported in value terms. This change affects 234 out of 463 item groups in the IIP basket, representing 36.02 percent of the total index weight.

The temporary measures were introduced on 12 June 2026 during the disruption caused by the West Asia crisis. At that time, international fuel prices had risen sharply, while the Government continued to protect retail consumers by keeping petrol and diesel prices stable. This created a wide difference between retail fuel prices and the rates applicable to bulk consumers.