Index of Industrial Production

• With the eight core industries’ output having grown at a 14-month high of 12.1% in August, and other high frequency indicators showing upbeat performance, economists anticipate the Index of Industrial Production (IIP) growth in the month to come in at around 10%.

ABOUT IIP

• IIP is a ratio which measures the growth of various sectors in the economy.
• It is released every month by Central Statistics Office (CSO), under the Ministry of Statistics and Programme Implementation (MoSPI).
• Base year 2011-12
• The IIP comprises 3 broad sectors: Manufacturing, Mining and Electricity.
• The weightage of all 8 core industries in IIP is 40.27 %.

ABOUT INDEX OF EIGHT CORE INDUSTRIES

• In IIP, the decreasing order of core industries among them is as
  • Refinery Products (weight: 28.04%) > Electricity (19.85%)> Steel (17.92%) > Coal (10.33%) > Crude Oil (8.98%) > Natural gas(6.88%)> Cement (5.37%)> Fertilizers (2.63%).
• The Index is compiled and released by the Office of the Economic Adviser (OEA),Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry.
• Objective- to provide an advance indication of production performance of industries of ‘core’ naturebefore the release of IIP by the Central Statistics Office.