INDEX OF INDUSTRIAL PRODUCTION (IIP)

Oct. 14, 2019

According to the data for the “Quick Estimates of Index of Industrial Production” released by the Ministry of Statistics, India’s industrial sector production contracted by 1.1 per cent in August when compared to the production in the same month in 2018.

About:

The Index of Industrial Production (IIP) is an index which shows the growth rates in different industry groups of the economy in a stipulated period of time.
The IIP index is computed and published by the Central Statistical Organisation (CSO) on a monthly basis.
Currently IIP figures are calculated considering 2011-12 as base year. Besides the new base year, different sectors have been amended based on National Industrial Classification (NIC), 2008.
Major changes in coverage of the new series of IIP:
- The un-organised sector was included in the existing series
- Mining sector basket now comprisesof 29 minerals as opposed to 61 minerals in the old series.
- Under ‘Electricity’ sector, electricity generation from renewable energy sources has been included.