India Index of Industrial Productions (IIP)

Explaination on India Industrial Production

1. All India Index of Industrial Production (IIP) Economic Statistics Division National Statistics Office M/o Statistics and P.I. This Photo by Unknown Author is licensed under CC BY-SA

2. Index of Industrial Production (IIP) The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in the base period. IIP, as a Volume Index, quantifies the production level of industry at different periods of time with reference to a fixed time point (‘base year’)

3. Importance of IIP Used for compilation of Gross Value Added of Manufacturing sector in Gross Domestic Product of the country. Used extensively by Government agencies/ departments especially by Ministry of Finance, Reserve Bank of India, Financial intermediaries, Policy analysts Private companies for various analytical purposes etc.

4. IIP with base year 2011-12 All India IIP is released on the 12 th of every month (previous working day if 12 th is a holiday) with a lag of 42 days Scope of all India IIP Mining Manufacturing Electricity Data Variable Physical output quantities and values of output

5. Methodology- Item Basket selection Mining Sector: 29 minerals identified by Indian Bureau of Mines. Electricity Sector: One item namely, electricity generation from both conventional and renewable sources Manufacturing Sector (NIC 2-digit 10 to 32) Representative basket is selected from Annual Survey of Industries (ASI) 2011-12 data. Items contributing up to 80% in the Gross Value Output of each industry group (3 Digit NIC) in ASI for the base year are selected in the item basket. 809 selected items combined to 405 item groups The total number of item groups in the current series are 407.(Mining – 1 item group, Manufacturing – 405 item groups and Electricity- 1 item group)

6. Manufacturing Sector: NIC 2 digit NIC 2008 Description 10 Manufacture of food products 11 Manufacture of beverages 12 Manufacture of tobacco products 13 Manufacture of textiles 14 Manufacture of wearing apparel 15 Manufacture of leather and related products 16 Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials 17 Manufacture of paper and paper products 18 Printing and reproduction of recorded media 19 Manufacture of coke and refined petroleum products 20 Manufacture of chemicals and chemical products NIC 2008 Description 21 Manufacture of pharmaceuticals, medicinal chemical and botanical products 22 Manufacture of rubber and plastics products 23 Manufacture of other non-metallic mineral products 24 Manufacture of basic metals 25 Manufacture of fabricated metal products, except machinery and equipment 26 Manufacture of computer, electronic and optical products 27 Manufacture of electrical equipment 28 Manufacture of machinery and equipment n.e.c. 29 Manufacture of motor vehicles, trailers and semi-trailers 30 Manufacture of other transport equipment 31 Manufacture of furniture 32 Other manufacturing This Photo by Unknown Author is licensed under CC BY-SA-NC

7. Weights Distribution in IIP (Sectoral)

8. Weights Distribution at NIC 2,3,4 Digit of Manufacturing

9. Weights in all India IIP (Base Year 2011-12 = 100) Weights in All India IIP 2011-12

10. Data Sources for all India IIP Sl No Data Sources Weights (%) Item groups 1 D/o Promotion of Industries and Internal Trade (DPIIT) 47.54 322 2 Indian Bureau of Mines 14.37 1 (29 minerals) 3 M/o Petroleum & Natural Gas 11.29 9 4 Joint Plant Committee 10.52 18 5 Central Electricity Authority 7.99 1 6 D/o Chemicals and Petrochemicals 2.54 27 7 O/o Textile Commissioner 1.94 7 8 D/o Fertilisers 1.06 4 9A Dte . Of Sugar and Vegetable Oils (for Edible Oils only) 0.97 10 9B Dte . Of Sugar and Vegetable Oils (for Sugar only) 0.76 1 10 O/o Coal Controller 0.49 1 11 Tea Board 0.30 1 12 Railway Board 0.13 3 13 O/o Jute Commissioner 0.07 1 14 Coffee Board 0.04 1 TOTAL 100.00 407

11. Compilation of IIP 2011-12 The all India IIP is compiled using Laspeyre’s fixed base formula (weighted arithmetic-mean of production relatives) : X 100 Where, = Weight of item = Production relative of item ( ) = Production of item in current month = Average monthly production of item in base year Production of items reported in value terms first deflated by appropriate WPI before calculating production relatives  

12. Revision Policy in IIP 2011-12 Each month indices at Sectoral level, NIC 2-digit level and as per use based categories are released as follows: Quick estimate - Reference month (e.g. Dec 2024) 1st Revision - Previous month of the reference month (e.g. Nov 2024) Final Revision - Third previous month of the reference month (e.g. Sep 2024)

13. Dissemination in IIP 2011-12 On 12 th of every month (Previous working day if 12 th is a holiday ) Press Release through PIB Through MoSPI website Press release and data for monthly and annual indices and growth rates at sectoral, NIC 2 Digit level and UBC level. Item level production and indices are also disseminated through website of MoSPI .

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