Why in news?
The Quick Estimates of Index of Industrial Production (IIP) is released on 12th of every month (or previous working day) with a six weeks lag and compiled with data received from source agencies.
For the month of March 2020, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at ~ 120.
- 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.
- 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.
- Base Year for IIP is 2011-2012.
- The eight core industries of India represent about 40% of the weight of items that are included in the IIP.
The Eight Core Sectors/Industries are:
- Refinery products
- Crude oil
- Natural gas
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.