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Indian Economy / Industry Sector

Index of Industrial Production in India

    The Index of Industrial Production ( IIP ) is an index number which gives information about growth of different sectors such as mining, electricity and manufacturing in an economy. The weightage for Mining in IIP is 14.373%, for Manufacturing it is 77.633% and for Electricity it is 7.994%.

    • IIP is a composite number measuring the short-term fluctuations in the production volume of a number of industrial products during a given time period with reference to a particular base year.
    • Central Statistical Organization ( CSO ), Ministry of Statistics and Programme Implementation compiles and publishes IIP number on monthly basis, six weeks after the end of that particular reference month.
    • In India, 2011-12 is the present base year for IIP series and it was changed from the base year 2004-05. Generally, the base year value of the index is given as 100. If the present IIP number is 160, it means there is a 60% growth in industrial production when compared to the base year, 2011-12.
    • Coal, Natural Gas, Refinery Products, Crude Oil, Steel, Fertilizers, Electricity and Cement are called Core industries. The eight Core industries constitute nearly 40.27% weightage of industrial products included in IIP.
    • Use-based classification of IIP - Users sometimes also require the index number of different use-based categories of IIP. IIP is classified into six use-based categories, which are Primary goods ( having weight 34.05% ), Capital goods ( 8.22% ), Intermediate goods ( 17.22% ), Infrastructure / Construction goods ( 12.34% ) Consumer durables ( 12.84% ) and Consumer non-durables ( 15.33% ).