In this article, we will discuss IIP. So, let’s get started.
Index of Industrial Production (IIP)
- It is an indicator that measures the changes in the volume of production of industrial products during a given period. Base Year- 2011-2012.
- It is compiled and published monthly by the National Statistical Office, Ministry of Statistics and Programme Implementation.
- It is a composite indicator that measures the growth rate of industry groups classified under:
- Broad sectors: Mining, Manufacturing, and Electricity.
- Use-Based Sectors: Basic Goods, Capital Goods, and Intermediate Goods.
- Index of Eight Core Industries (ICI): This is an index of the eight most fundamental industrial sectors of the Indian economy and comprises 40.27% of the weight in IIP.
- The monthly Index of Eight Core Industries (ICI) measures collective and individual performance of production in eight core industries.
- The eight core sector industries in decreasing order of their weightage:
- Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.