Industrial output rebound to 7.1% in November 22

Subject : Economy

Section: GDP

Concept :

India’s industrial growth, as per the Index of Industrial Production (IIP), accelerated to 7.1 percent in November, data released on January 12 by the Ministry of Statistics and Programme Implementation showed.

Index of Industrial Production

IIP is an indicator that measures the changes in the volume of production of industrial products during a given period.
It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
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.
Base Year for IIP is 2011-12.

Significance of IIP:

It is used by government agencies including the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes.
IIP remains extremely relevant for the calculation of the quarterly and advance GDP (Gross Domestic Product) estimates.

About Eight Core Sectors:

These comprise 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.