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What is Index of Industrial Production (IIP) number?
What is Index of Industrial Production (IIP)? Index of Industrial Production (IIP) - Indicator for India Incís growth IIP number or IIP data (Index of Industrial Production) is a measurement which represents the status of production in the industrial sector for a given period of time compared to a reference period of time. IIp number is one of the best statistical data, which helps us to measure the level of industrial activity in Indian economy. Please note that IIP data is a short-term indicator of our industrial growth till the actual results from Annual Survey of Industries (ASI) is published. IIP data is a very important indicator to the Government for planning purposes and is also used by various organisations like Industrial Associations, Research Institutes, Financial Institues and Academicians.
How IIP Data is formed? IIP data is a simple index which provides information about the growth of different sectors of our economy like mining, electricity, Manufacturing & General. The IIP index reflects the growth in Indiaís industrial activity and excludes all kinds of services. The base year for the index over the period of the analysis is 1993-94. When the IIP data in India is published? Usually IIP numbers of a particular month would be published after two months. The date of publishing IIP numbers are usually before noon on the 12th of a month. The dates are indicative based on the previous publishing dates, it can be anywhere between 11th to 14th of a month. Use-Based Classification Another classification is use-based (consumption based), where IIP is classified on the base of use like Basic Goods, Capital goods, Intermediate goods & consumer goods.
Sectors in IIP Data The weightage of Indian IIP data is broadly divided into three segments - manufacturing (79.36%), mining & quarrying (10.47%) and electricity (10.17%). Manufacturing : includes items like food items, machinery, wood furniture etc Electricity : includes generation and transmission of electricity ( from various sources like - thermal, hydro, solar etc) Mining : includes mining of coal, oil other metals etc Manufacturing is the major sector, which is further divided into 17 industry groups like * Food Products * Beverages,Tobacco and related Products * Cotton Textiles * Wool, silk and man made fibre textiles * Jute and other vegetable fibre textiles * Textile products including wearing apparel * Wood and wood products (furniture & fixtures) * Paper, paper products, printing and allied industries * Leather and leather and fur products * Basic Chemicals & Chemical Products (except products of Petroleum & Coal) * Rubber, Plastic, Petroleum and Coal Products * Non-Metallic Mineral Products * Basic Metal and Alloy Industries * Metal Products and Parts, except Machinery and Equipment * Machinery and Equipment other than Transport equipment * Transport Equipment and Parts * Other Manufacturing Industries