NEWS – Combined Index of Eight Core Industries (ICI) increases by 5.2 per cent (provisional) in March, 2024 as compared to March, 2023

INDEX OF INDUSTRIAL PRODUCTION (IIP)

• The IIP is a composite indicator that measures the growth rate of industry groups categorized under broad sectors like Mining, Manufacturing, and Electricity, as well as use-based sectors such as Basic Goods, Capital Goods, and Intermediate Goods.
• The Central Statistical Organization (now the National Statistics Office or NSO), established in 1951, took on the responsibility for compiling and publishing the IIP. The NSO compiles the IIP using secondary data from 14 source agencies across various Ministries/Departments. The Department of Industrial Policy and Promotion (DIPP) provides a significant portion of the data used in IIP calculations.
• The Ministry of Statistics and Programme Implementation oversees the IIP calculation, with the base year set at 2011-2012. This base year serves as a reference point for comparing industrial production growth over time.
• The IIP includes eight core sectors that collectively account for 40.27% of the index’s weight. These sectors, listed in decreasing order of weightage, are Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement, and Fertilizers. Monitoring the performance of these core sectors is crucial for gauging overall industrial production trends in the country.