Compilation of Index of Industrial Production in India
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Transcript of Compilation of Index of Industrial Production in India
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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