Index of Industrial Production (IIP)

• Index of Industrial Production (IIP) is an index which helps us understand the growth of various sectors in the Indian economy such as mining, electricity and manufacturing.
• IIP is a short term indicator of industrial growth till the results from Annual Survey of Industries (ASI) and National Accounts Statistics (Eg: GDP) are available.
• The base year of the index is given a value of 100. The current base year for the IIP series in India is 2011-12. So, if the current IIP reads 180, it means that there has been 80% industrial growth compared to the base year, ie 2011-12.
• IIP is an important composite indicator in India that measures the changes in the volume of production of a basket of industrial products.
• IIP measures the growth of manufacturing, mining, and electricity sectors.
• The aim of IIP is to capture the direction and the trend of industrial production in the country, not the absolute value of industrial production.
• It measures the short-term changes in the volume of production of a basket of industrial products.
• In India, the periodicity of IIP is one month with a six-week lag.
• The basket of the new series contains 407 item groups ( 405 manufacturing sector item groups (comprising of 809 items) and one item group each of mining and electricity).

Index of Industrial Production (IIP) is released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation. IIP is published monthly, six weeks after the reference month ends.

The sources for compiling the new IIP Series?
The new series has 14 sources namely –
(i) Department of Industrial Policy and Promotion (DIPP);
(ii) Indian Bureau of Mines;
(iii) Central Electricity Authority;
(iv) Joint Plant Committee, Ministry of Steel;
(v) Ministry of Petroleum and Natural Gas;
(vi) Office of Textile Commissioner;
(vii) Department of Chemicals and Petrochemicals;
(viii) Directorate of Sugar & Vegetable Oils;
(ix) Department of Fertilizers;
(x) Tea Board;
(xi) Office of Jute Commissioner;
(xii) Office of Coal Controller;
(xiii) Railway Board; and
(xiv) Coffee Board.