GK Chronicle GK Chronicle

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%).