Transcript Introduction

Compilation of
Index of Industrial Production
in India
Department of Industrial Policy & Promotion
Ministry of Commerce & Industry
Government of India
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Index of Industrial Production
Definition & Coverage
● Represents the status of industrial production for a given
period of time as compared to a reference period of time
● Compiled by Central Statistical Organisation (CSO)
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●
Covers 538 items
●
Base year of current IIP series in India is 1993-94
 Base year under revision to 2004-05
Classification
 Current IIP series based on National Industry
Classification (NIC) 1987
 NIC (1987) generally conforms to the principles and
procedures laid down in the International Standard
Industrial Classification (ISIC)
 The revised series to be based on NIC (2004), which
follows (ISIC), Rev 3.1
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Item basket
 Index has a wide canvas covering Mining,
Manufacturing and Electricity
 Total 538 items
 Mining : 64 items
 Manufacturing: 473 items
 Electricity: 1 item
 Criteria for Selection
Based on Gross Value Added (GVA) as in National
Account Statistics
 Each item accounts at least US $ 20 million
(approx)of GVA at the item level

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Weighting Diagram & Formula
 Sectoral Weights allocated on the basis of GVA as
published in National Accounts Statistics
 Allocation of weights within 4 digit industry group on the
basis of Value of Output from the Annual Survey of
Industries
 Index calculated by using Laspeyre’s formula :
I=Σ (Wi Ri)/Σ Wi
Where I is the Index, Ri is the production relative of the ith item for
the month in question and Wi is the weight allotted to it
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Sources of Data
 Production data for compiling IIP collected from 15
source agencies
 52 % manufacturing data collected directly from
production units by Department of Industrial
policy & Promotion
 Index relating to Mines compiled by Indian
Bureau of Mines
 Central Electricity Authority furnishes data on
electricity generation
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Timeliness & Dissemination
 Quick Estimates of IIP released within six weeks of
reference month as per SDDS norms of IMF
 Index revised twice with quick estimates for next
month and final index in the third month
 The Central Statistical Organisation is responsible
for release of IIP
 Disseminated in the form of monthly press release
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Dissemination of IIP
Unique Features
 Dissemination based on structure of the economy
 3 broad groups
 Mining
 Manufacturing
 Electricity
 17 groups of the manufacturing sector
 Purposive aggregation based on sources of demand
 Capital Goods
 Intermediate Goods
 Basic Goods
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 Consumer Goods
Thank you for your
attention
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