Index of Industrial Production(IIP)
Index of Industrial Production
- IIP is a ratio which measures the growth of various sectors in the economy. Being a ratio, it represents the status of production in the industrial sector for a given period of time as compared to the reference period of time (base year).
- IIP data is released every month by CSO.
- The current base year is 2011-12
Composition of IIP
- IIP` comprises of 682 individual items
- Sector wise, the items included falls into 3 categories viz
- respectively in decreasing order of their weightage to the index.
Weightage of Core Industries in IIP
- In terms of percentage, the weightage of all 8 core industries in IIP is around 38%(Changed to 40.27%). Read the note for change in the base year.
- the decreasing order of core industries among them is as:
- ELECTRICITY> STEEL> REFINERY PRODUCTS> CRUDE> COAL> CEMENT> NATURAL GAS> FERTILIZERS
- The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, revise the base year of the macroeconomic indicators, as a regular exercise, to capture structural changes in the economy and improve the quality and representativeness of the indices. In this direction, the base year of the all-India Index of Industrial Production (IIP) has also been revised from 2004-05 to 2011-12 to not only reflect the changes in the industrial sector but to also align it with the base year of other macroeconomic indicators like the Gross Domestic Product (GDP), Wholesale Price Index (WPI).
- Also, The Base Year of the Index of Eight Core Industries has been revised from the year 2004-05 to 2011-12 from April, 2017.
- The revised Eight Core Industries have a combined weight of 40.27 percent in the IIP.
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