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Index of Industrial Production (IIP)
Why is it in the news?
- As per the official data released, Industrial production grew at a six-month high of 3.4 per cent in April.
- The growth in April is mainly on account of improvement in mining and power generation.
More in the news
- The Index of Industrial Production (IIP) had expanded by 4.5% in April 2018.
- The expansion in the mining sector was 5.1% compared to 3.8% in the year-ago month.
- Similarly, the growth in the power sector was 6% in April as against 2.1% in the corresponding month of the last fiscal.
- However, there was a slowdown in the manufacturing sector.
- The previous high in industrial growth was recorded at 8.4% in October 2018.
Concept
- 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
Indian Express.