The Full Form of IHP is Indicated Horse Power.

Indicated horsepower (ihp) is the theoretical power of a reciprocating engine if it is completely frictionless in converting the expanding gas energy (piston pressure × displacement) in the cylinders. It is calculated from the pressures developed in the cylinders, measured by a device called an engine indicator – hence indicated horsepower. As the piston advances throughout its stroke, the pressure against the piston generally decreases, and the indicator device usually generates a graph of pressure vs stroke within the working cylinder. From this graph the amount of work performed during the piston stroke may be calculated.

Indicated horsepower was a better measure of engine power than nominal horsepower (nhp) because it took account of steam pressure. But unlike later measures such as shaft horsepower (shp) and brake horsepower (bhp), it did not take into account power losses due to the machinery internal frictional losses, such as a piston sliding within the cylinder, plus bearing friction, transmission and gear box friction, etc.