Central Statistics Office Current Affairs
According to data released by Central Statistics Office (CSO), factory output measured in terms of the Index of Industrial Production grew at 6.6% in July 2018. This growth was on the back of good performance by manufacturing sector and higher offtake of capital goods and consumer durables. Besides, IIP growth for June 2018 was also revised downwards to 6.8% from the provisional estimate of 7% released in August 2018. The IIP growth in April-July 2018 period was 5.4% compared to 1.7% year ago.
July 2018 IIP
Manufacturing sector (Weightage: 77.6): It recorded 7% growth.
Electricity sector (Weightage: 7.9%): It recorded 6.7% growth.
Mining (Weightage: 14.3%): It recorded 3.7% growth.
Consumer durables sector: It recorded impressive growth of 14.4% as against dip of 2.4% in July 2017.
Capital goods production: It grew by 3% as against decline of 1.1% in July 2017.
Index of Industrial Production (IIP)
IIP is composite indicator that measures short-term changes in volume of production of basket of industrial products during given period with respect to chosen base period. It is compiled and published monthly by Central Statistical Organization (CSO), Ministry of Statistics and Programme Implementation (MoSPI).
Base year: The CSO had revised the base year of the IIP from 2004-05 to 2011-12 in May 2017 to capture structural changes in economy and improves quality and representativeness of indices. The revised IIP (2011-12) reflects changes in industrial sector and also aligns it with base year of other macroeconomic indicators like Wholesale Price Index (WPI) and Gross Domestic Product (GDP).
Sector wise items and weightages: IIP covers 407 item groups. Sector wise, the items included falls into 3 categories viz. Manufacturing (405 items), Mining (1 items) & Electricity (1 item). The weights of the three sectors are 77.63%, 14.37%, 7.9% respectively. The combined weightage of eight core Industries in IIP is 40.27%.
Ravindra Dholakia committee: Government forms panel to upgrade norms for state, district level economic data collection
The Union Government has constituted 13-member Committee for Sub-National Accounts to upgrade the norms for computation of economic data at states and districts level in backdrop of plans to revise the base year for National Accounts or Gross Domestic Production (GDP) calculation. It will be headed by Ravindra H Dholakia, a retired professor of IIM Ahmedabad.
Terms of Reference of the Committee
The committee will review concepts, definitions, classifications, data conventions, data sources and data requirements for preparation of State Domestic Product (SDP) and District Domestic Product (DDP) and to lay down revised guidelines. It will also suggest measures for improving SDP and DDP in the country taking into consideration availability of data and requirements of Centre and States/UTs. It will also suggest state level annual and benchmark surveys keeping in view needs of System of National Accounts especially in view of next base year revision. It will submit its report within one year.
The Central Statistics Office (CSO), under Ministry of Statistics and Programme Implementation (MOSPI) revises the base year of macroeconomic indicators, as regular exercise, to capture structural changes in economy and improve quality and representativeness of indices. CSO had last updated base year for GDP calculation to 2011-12 from January 2015, replacing old series base year of 2004-05.
MOSPI is planning to change base year to 2017-18 for calculation of GDP and Index Industrial Production (IIP) numbers from current 2011-12 with an aim to capture changes in the economy. At conference of central and state statistical organisations (COCSSO) earlier this year, it was suggested that same principles and concepts should be used while calculating SDP and DDP across the country to make data comparable.