Index of Industrial Production (IIP) in India
Index Of Industrial Production (IIP)
March 2020
16.66% (YoY)
Index Of Industrial Production (IIP)
Trend
Index Of Industrial Production
March 2020
Chart of Current Index of Industrial Production (IIP)
Index Of Industrial Production (IIP)
The Index Of Industrial Production (IIP) in March 2020 declined by 16.66% (YoY)
from an year ago.According to data released by the Central Statistics Office (CSO), the country's IIP in Mar 2020 was pegged at 120.1, compared to 144.1 reported in the corresponding period last year.
This months IIP figure represents a decline of 10.04% (MoM) since last month, as IIP for Feb 2020 stood at 133.5.
Current Index Of Industrial Production (IIP)
IIP: Sector-Based Classification
| Current | Previous | CHANGE | ||
|---|---|---|---|---|
| INDEX | March 2020 | February 2020 | MoM | YoY |
| Mining | 132.7 | 123.4 | 7.54% | 0.00% |
| Manufacturing | 114.8 | 133.3 | 13.88% | 20.61% |
| Electricity | 149.2 | 153.8 | 2.99% | 6.81% |
| IIP Index | 120.1 | 133.5 | 10.04% | 16.66% |
IIP: Use-Based Classification
| Current | Previous | CHANGE | ||
|---|---|---|---|---|
| INDEX | March 2020 | February 2020 | MoM | YoY |
| Primary Goods | 135.6 | 131.1 | 3.43% | 3.14% |
| Capital Goods | 76.4 | 97.5 | 21.64% | 35.58% |
| Intermediate Goods | 125.8 | 141.5 | 11.10% | 18.52% |
| Infrastructure, Construction Goods | 118.4 | 141.0 | 16.03% | 23.81% |
| Consumer Durables | 88.1 | 117.9 | 25.28% | 33.11% |
Chart for Historical Index of Industrial Production (IIP)
What is Index of Industrial Production (IIP)?
The All India Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Index of Industrial Production (IIP) has historically been one of the most well-known and well-used indicator used for comparison of economic performance over time. The IIP measures volume changes in the production of an economy, and therefore provides a measurement that is free of influences of price changes, making it an indicator of choice for many applications.
This indicator is of paramount importance to the Government for policy planning purposes and is also being extensively used by various organizations including Industrial Associations, Research Institutes and Academicians.
Manufacturing still has the greatest multiplier effect, in terms of job creation, of any sector of the economy.
~ William Clay Ford, Jr.
Index Of Industrial Production in India
In India, Index Of Industrial Production (IIP) is compiled and published monthly by the Central Statistics Office (CSO) with the time lag of six weeks from the reference month.
Sectoral composition of the IIP
The IIP series has a total of 809 items occurring in the manufacturing sector in the item basket (405 item groups). The basket of Mining Sector (1 item group) comprises of 29 minerals identified by the Indian Bureau of Mines (IBM). The Basket of Electricty (1 item group) also caputures electricity generated from renewable sources.
| Sector | Weights | Item groups |
|---|---|---|
| Mining | 14.373% | 1 |
| Manufacturing | 77.633% | 405 |
| Electricity | 7.994% | 1 |
| Total | 100.000% | 407 |
Use-Based Classification of the IIP
Use-based classifications (UBCs) adopted in the IIP series are as follows:
- Primary goods - consisting of Mining, Electricity, Fuels and Fertilizers;
- Capital goods - e.g. Machinery items;
- Intermediate goods - e.g. yarns, chemicals, semi-finished steel items, etc.;
- Infrastructure/ Construction goods - e.g. paints, cement, cables, bricks and tiles, rail materials, etc.
- Consumer durables - e.g. garments, telephones, passenger vehicles, etc.; and
- Consumer nondurables - e.g. food items, medicines, toiletries, etc.
| Sector | Weights | Item groups |
|---|---|---|
| Primary Goods | 34.05% | 15 |
| Capital Goods | 17.22% | 110 |
| Intermediate Goods | 8.22% | 67 |
| Infrastructure, Construction Goods | 12.34% | 29 |
| Consumer Durables | 12.84% | 86 |
| Consumer Non-Durables | 15.33% | 100 |
| Total | 100.00% | 407 |
Source Agencies
The monthly production data for the compilation of new series of IIP are now being made available to the CSO by fourteen (14) source agencies viz.
- Indian Bureau of Mines (IBM)
- Directorate of Sugar & Vegetable Oils
- Tea Board
- Coffee Board
- Office of the Textile Commissioner
- Office of the Jute Commissioner
- Office of the Coal Controller
- Minister of Petroleum and Natural Gas
- Joint Plant Committee (Iron & Steel)
- Railway Board
- Department of Industrial Policy & Promotion
- Department of Chemicals and Petrochemicals
- Department of Fertilizers
- Central Electricity Authority