Online Courses (English)
This just in:

State PCS

Daily Updates

Important Facts For Prelims

Index of Industrial Production

  • 14 Feb 2022
  • 2 min read

Why in News?

Recently, as per official estimates for the Index of Industrial Production (IIP), India's industrial recovery slowed sharply in December 2021, with output growing just 0.4% year-on-year, and manufacturing activity contracting 0.1%.

  • Contrary to expected growth of 2.5%, growth has come in at 0.4% which is disappointing.

What is the Index of Industrial Production?

  • IIP is an indicator that measures the changes in the volume of production of industrial products during a given period.
  • It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
  • It is a composite indicator that measures the growth rate of industry groups classified under:
    • Broad sectors, namely, Mining, Manufacturing, and Electricity.
    • Use-based sectors, namely Basic Goods, Capital Goods, and Intermediate Goods.
  • Base Year for IIP is 2011-2012.
  • Significance of IIP:
    • It is used by government agencies including the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes.
    • IIP remains extremely relevant for the calculation of the quarterly and advance GDP (Gross Domestic Product) estimates.
  • About Eight Core Sectors:
    • These comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
    • The eight core sector industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.

Source: TH

SMS Alerts
Share Page