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Index of Industrial Production
Why is it in the news ?
- As per the official data released, Industrial activity slowed in January 2019 growing 1.7% in January from 7.5% a year ago.
- The activity slowed primarily due to weak manufacturing and electricity output coupled with an adverse base effect.
More in the news
- The Index of Industrial Production (IIP) had posted strong growth during October 2017 to January 2018 reflecting a pickup following earlier destocking by industries ahead of the rollout of goods and services tax.
- The IIP growth for January was also slower than the growth in December, which was revised up to 2.6% from 2.4% earlier.
- The slowdown giving rise to expectations of a rate cut by the Reserve Bank of India (RBI) in its upcoming April policy meet.
- The sectors where the slowdown is happening are manufacturing and industry. Apart from services, all the sectors seem to be slowing.
- The manufacturing sector saw growth slowing to 1.3% in January from 2.65% in December.
- The electricity sector saw growth slowing to 0.8% from 4.45% over the same period.
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 the Central 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.