India’s Index of Industrial Production (IIP) plummeted to 3.7% in June, marking a three-month low due to lackluster performance in the manufacturing sector. The IIP serves as a key economic indicator, reflecting trends in industrial production over time relative to a chosen base year. Computed and published monthly by the National Statistical Office (NSO), the IIP’s current base year is 2011-12, with a value of 100. Additionally, the Index of Eight Core Industries (ICI) gauges production in essential sectors like coal, steel, and electricity, aiding in predicting industrial performance prior to IIP releases.
Prelims pointer
- Index of Industrial Production (IIP): A pivotal economic metric measuring changes in industrial production trends relative to a base year. Calculated monthly by India’s National Statistical Office (NSO), it offers insights into the performance of various industrial sectors.
- Base Year: The reference year used to establish the initial value of 100 for the IIP. The current base year for India’s IIP is 2011-12, enabling comparisons of production changes against this benchmark.
- Index of Eight Core Industries (ICI): This index evaluates the combined and individual performance of eight fundamental industries, including coal, crude oil, and steel. The ICI serves as an advance indicator for overall industrial and economic activity before the official IIP release.
- Central Statistics Office: The entity responsible for generating official statistical data and analysis within India. It releases the IIP, which provides insights into the nation’s industrial health.
- Office of the Economic Adviser (OEA): A department under the Ministry of Commerce & Industry in India. It compiles and releases the ICI, offering a comprehensive assessment of core industries’ production status.
