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Compilation of Index of Industrial Production
in India
Department of Industrial Policy
Promotion Ministry of Commerce
IndustryGovernment of India
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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
• Base year under revision to 2004-05

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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

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Item basket

• 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

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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 Laspeyres formula
• IS (Wi Ri)/S 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

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Sources of Data

• 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

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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
• Disseminated in the form of monthly press
  release

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Dissemination of IIP

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

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• Thank you for your attention