In News
- India’s industrial recovery slowed sharply in December, with output growing just 0.4% year-on-year, and manufacturing activity shrinking 0.1% in the month, as per quick official estimates for the Index of Industrial Production (IIP)
About Index of Industrial Production (IIP)
- It 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.
- In India, the first official attempt to compute the Index of Industrial Production (IIP) was made much earlier than the first recommendation on the subject came at the international level.
- With the inception of the Central Statistical Organization (now known as the National Statistics Office (NSO)) in 1951, the responsibility for compilation and publication of IIP was vested with it.
- Ministry: Ministry of Statistics and Programme Implementation.
- Base year: 2011-2012
- Sources of data: NSO compiles the Index of Industrial Production (IIP) using secondary data received from 14 source agencies in various Ministries/Departments or their attached/subordinate offices.
- The Department of Industrial Policy and Promotion (DIPP) is the source for the major chunk of data for the calculation.
About Eight Core Sectors
- These comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
- The eight core sector industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
Source: IE
