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Compilation of Index of Industrial Production

in India

Department of Industrial Policy & PromotionDepartment of Industrial Policy & PromotionMinistry of Commerce & IndustryMinistry of Commerce & Industry

Government of IndiaGovernment of India

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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)

● Covers 538 items

● Base year of current IIP series in India is 1993-94

Base year under revision to 2004-05

Index of Industrial Production

Classification

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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

Item basket

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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

Weighting Diagram & Formula

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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

Sources of Data

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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

Timeliness & Dissemination

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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

Dissemination of IIP

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Unique FeaturesDissemination based on structure of the economy

3 broad groups MiningManufacturingElectricity

17 groups of the manufacturing sector

Purposive aggregation based on sources of demandCapital GoodsIntermediate GoodsBasic GoodsConsumer Goods

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Thank you for your attention