Index of Industrial Production (IIP)
Index of Industrial Production (IIP)
Why In News:
India's industrial output growth registered at 4.9% in April under a new IIP data series- slower than the headline rate would otherwise suggest, but a recovery from 3.2% in March.
And also, the Ministry of Statistics and Programme Implementation (MoSPI) has revised the base year of the All-India Index of Industrial Production (IIP) from 2011–12 to 2022–23 with the objective of making the index more representative of the current structure and dynamics of the industrial sector.
What is the IIP?
Definition: The Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period relative to a base period.
Compiled by: National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
Frequency: Released monthly with a six-week lag (e.g., April IIP released in early June).
Base Year: The IIP base year has been officially updated from 2011-12 to 2022-23.
Major Changes in New Series of IIP
Sector
Base Year 2011-12
Base Year 2022-23
Weights (in %)
Item groups
Weights (in %)
Item groups
Mining & Quarrying
14.372
1
11.053
3
Manufacturing
77.633
405
76.062
455
Electricity & Gas Supply
7.995
1
10.865
3
Water Supply; Sewerage and Waste Management*
--
--
2.020
2
Total
100
407
100
463
*entire new sector has been added in the new IIP series with base 2022-23
Base year revised from 2011-12 to 2022-23.
Expanded scope & coverage by including Gas Supply, Water Supply, Sewerage, and Waste Management activities while retaining the existing sectors.
Greater granularity by providing separate indices for
Electricity generation from Renewable and Non-renewable sources
Fuel Minerals, Metallic Minerals and Non-Metallic Minerals
Item basket revamped to cover 463 item groups:
Additions: Cards with a magnetic stripe, CCTV camera, Articles of non-woven textiles, Parts of aircraft and spacecraft, Stents, Vaccine (other than veterinary).
Deletions: Kerosene, Fluorescent tubes and CFLs, Tubes for bicycle/ tricycle/ rickshaw tyres. Tubes for LMV tyres, Printing machinery, Sewing machines.
Related Industrial Indicators:
Manufacturing PMI (Purchasing Managers' Index): Compiled by S&P Global (formerly IHS Markit) based on a survey of purchasing executives. A reading above 50 indicates expansion; below 50 indicates contraction.
Core Sector / Index of Eight Core Industries (ICI): Tracks 8 sectors — Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity — together accounting for ~40.3% of IIP weight (Base Year 2011-12).