Focus: GS III- Indian Economy
Why in News?
The combined Index of Eight Core Industries (ICI) increased by 3.8per cent (provisional) in December 2023 as compared to the Index of December 2022.
- The production of Coal, Natural Gas, Steel, Fertilizers, Refinery Products, Cement and Electricity recorded positive growth in December 2023.
- The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).
About Index of Eight Core Industries:
- The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
- Released by: The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade
- Base year: 2011-12
Below image attached Eight Core Industries based on their weightage.
Index of Industrial Production (IIP):
- The Index of Industrial Production (IIP) is an index that shows the growth rates in different industry groups of the economy in a fixed period of time.
- It is compiled and published monthly by the Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation (MOSPI).
- The Central Statistics Office (CSO) revised the base year of the all-India Index of Industrial Production (IIP) from 2004-05 to 2011-12 on 12 May 2017.
- IIP 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.
Significance of IIP:
- IIP is the only measure on the physical volume of production.
- 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 estimates
