Why is it in the news?
- Industrial output grew by 2.4% in December, up from 17-month low of 0.3% in November, showed data released by the Central Statistics Office (CSO).
- Growth was subdued due to contraction in mining and lacklustre manufacturing expansion.
More about the scheme
- The moderation in overall growth in industrial production for December 2018 is owing to a contraction in the mining sector and a slowdown in manufacturing activity.
- The capital goods segment, a proxy for investment activity, expanded by 5.9% in December, after contracting by 3.1% in November.
Index of Industrial Production (IIP)
- The Index of Industrial Production (IIP) is the number denoting the condition of industrial production during a certain period.
- IIP shows the status of industrial activity, you can find out if the industrial activity has increased, decreased or remained same.
- It is important for the IIP to reflect true industrial trends, which in turn has an impact on the policy decision-making.
- These figures are calculated in reference to the base year. Currently the base year is 2011-12.
- Index of Industrial Production (IIP) is released by theCentral Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation.
- It dose not consider measuring of informal sector activity . Same with the PMI.
Source
The Hindu.