The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, manufacturing and electricity.
The Central Statistical Organisation (CSO) is responsible for the compilation and publication of the Index of Industrial Production (IIP) since 1950.
The IIP is compiled as a simple weighted arithmetic mean of production relatives by using Laspeyre’s formula. The IIP is a quantum index, the production of items being expressed in physical terms. However, the unit of reporting in respect of certain items like machinery, machine tools, ship building, etc. is in value terms.
So IIP is an short term economic indicator that measures the changes in the volume of production of industrial products during a given period.
Eight (8) core industries comprise 40.27% 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.
#iip #coreindustries #industrialproduction
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