INDIA’S INDUSTRIAL PRODUCTION (Syllabus: GS Paper 3 – Economy)

Context: Recently, India's industrial production reached a 16-month high in October, benefiting from a favorable base effect.

India's Industrial Production

• About: IIP is an indicator that measures the changes in the volume of production of industrial products during a given period.
• Published by: National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.

oIt is a composite indicator that measures the growth rate of industry groups classified under:

• Broad Sectors: Mining, Manufacturing, and Electricity.
• Use-based sectors: Basic Goods, Capital Goods, and Intermediate Goods.
• Base Year: 2011-2012.
• 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.