Compilation of Index of Industrial Production in India

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Compilation of Index of Industrial Production in India Department of Industrial Policy & Promotion

Compilation of Index of Industrial Production in India Department of Industrial Policy & Promotion Ministry of Commerce & Industry Government of India 1

Index of Industrial Production Definition & Coverage ● Represents the status of industrial production

Index of Industrial Production 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 Ø Base year under revision to 2004 -05 2

Classification Current IIP series based on National Industry Classification (NIC) 1987 NIC (1987) generally

Classification 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 3

Item basket Index has a wide canvas covering Mining, Manufacturing and Electricity Total 538

Item basket Index has a wide canvas covering Mining, Manufacturing and Electricity Total 538 items Ø Mining : 64 items Ø Manufacturing: 473 items Ø Electricity: 1 item Criteria for Selection Based on Gross Value Added (GVA) as in National Account Statistics Ø Each item accounts at least US $ 20 million (approx)of GVA at the item level Ø 4

Weighting Diagram & Formula Sectoral Weights allocated on the basis of GVA as published

Weighting Diagram & Formula 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 5

Sources of Data Production data for compiling IIP collected from 15 source agencies Ø

Sources of Data Production data for compiling IIP collected from 15 source agencies Ø 52 % manufacturing data collected directly from production units by Department of Industrial policy & Promotion Ø Index relating to Mines compiled by Indian Bureau of Mines Ø Central Electricity Authority furnishes data on electricity generation 6

Timeliness & Dissemination Quick Estimates of IIP released within six weeks of reference month

Timeliness & Dissemination 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 Ø Disseminated in the form of monthly press release 7

Dissemination of IIP Unique Features Dissemination based on structure of the economy Ø 3

Dissemination of IIP Unique Features Dissemination based on structure of the economy Ø 3 broad groups Mining Manufacturing Electricity Ø 17 groups of the manufacturing sector Purposive aggregation based on sources of demand Ø Capital Goods Ø Intermediate Goods Ø Basic Goods 8 Ø Consumer Goods

Thank you for your attention 9

Thank you for your attention 9