Why is it in the news ?
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According to the official data released, growth in industrial activity as measured by the Index of Industrial Production(IIP) slowed marginally in September to 4.5%.
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The growth slipped due to slowing growth in the manufacturing and capital goods sectors.
More in the news
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Growth in the IIP slowed from 4.67% in August.
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Within the index, growth in the manufacturing sector slowed to 4.62% in September from 5.08% in August.
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Activity in the mining and quarrying sector witnessed an acceleration, growing at 0.21% in September compared with a contraction of 0.54% in the previous month.
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Growth in the electricity sector touched 8.24% in September, up from 7.59% in the previous month.
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The capital goods sector, however, saw growth slowing to 5.76% from 9.34% over the same period.
Concept
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The Index of Industrial Production (IIP) is the number denoting the condition of industrial production during a certain period.
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IIP shows the status of industrial activity, you can find out if the industrial activity has increased, decreased or remained same.
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It is important for the IIP to reflect true industrial trends, which in turn has an impact on the policy decision-making.
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These figures are calculated in reference to the base year. Currently the base year is 2011-12.
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Index of Industrial Production (IIP) is released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation.
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It dose not consider measuring of informal sector activity . Same with the PMI.
Source
The Hindu, Indian Express.