Index of Industrial Production

Index of Industrial Production

News: India’s factory-output growth based on the Index of Industrial Production (IIP) rose to a 14-month high of 10.3% in August.

What is IIP?
• IIP is an index that tracks manufacturing activity in different sectors of an economy.
• Base year - 2011-12
• CSO under Ministry Of Statistics And Programme Implementation is responsible for the publication of IIP since 1950.
• Eight core industries comprise about 40 percent of the weight of items included in the IIP in decreasing order of their weightage are refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilisers.
• The IIP data is used by various government agencies such as the Ministry of Finance, the Reserve Bank of India (RBI), private firms and analysts, etc. for analytical purposes.

More on news:
• Electricity production: In August 2023 grew 15.3% year-on-year (y-o-y) and 8.1% sequentially, this rise could be attributed to deficient rainfall.
• Manufacturing output: It was up 9.3% in August and sequentially the output of the sector rose by 1.2% indicating an uptick in manufacturing activity.
• Mining Activity: It remained flat during August, even after growing 12.3% on year on account of the low base effect.
• Use-Based Category: All the six sectors recorded y-o-y growth with infrastructure goods’ output growing at 14.9%, followed by capital goods at 12.6% and primary goods at 12.4%. 

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