IIP Current Affairs - 2019
Category Wise PDF Compilations available at This Link
The Index of Industrial Production for the month of November has been released by the Central Statistical Office, under the Ministry of Statistics and Programme Implementation.
The Index of Industrial Production (IIP) provides details about the growth of various sectors in an economy such as mineral mining, electricity and manufacturing. IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Key Facts about the IIP, November 2018
The IIP report of CSO makes the following observations:
- Industrial growth unexpectedly plummeted to a 17-month low in November as a result of the post-festival season decline in manufacturing, fewer working days in the month and tighter financial conditions.
- The Index of Industrial Production (IIP) stood at 0.47 per cent in November and the high base of last year has also contributed to the slowdown. IIP had witnessed a growth of 8.5 per cent in November 2017.
- Manufacturing which constitutes 77.63 per cent of IIP, shrank 0.4 per cent, the Manufacturing had witnessed a robust growth of 10.4 per cent in November 2017.
- The production of both capital goods and consumer goods saw a decline.
- Mining expanded by 2.7 per cent in November 2018 compared with 1.4 per cent in November 2017.
- The electricity generation rose 5.1 per cent.
- The Production of intermediate items was down 4.5 per cent.
The Industrial growth in India is still not on a sound footing due to the high variability in industrial growth across sectors and within sectors on a month-on-month basis. It is expected that incrementally improving liquidity, normalisation after festive season related disruptions and spending tied to elections would act as a catalyst for the growth.
According to data released by Central Statistics Office (CSO), factory output measured in terms of Index of Industrial Production (IIP) grew 8.1% in October 2018 as against 4.5% in September 2018. The growth was aided by favourable base effect and robust output in all key sectors—manufacturing, electricity and mining. IIP is the closest approximation for measuring economic activity in the country’s business landscape.
Breakaway of October 2018 IIP
Sector wise Performance: Manufacturing sector output grew 7.9% in October 2018 from 4.6% in September 2018 and 2% a year ago. Electricity production growth grew to 10.8% in October from 8.6% in September 2018 and 3.2% a year ago. Mining activity grew to 7% in October 2018 from 0.2% in September 2018 from de-growth of (-) 0.2% last year.
Use-based Performance: Primary goods grew by 6.0%, intermediate goods by 1.8% and infrastructure/construction goods by 8.7% as compared to growth in October 2017. Consumer durables output also grew 17.6%, from 5.2% in September 2018, indicating higher production during the festive season. Consumer non-durables grew 7.9% in October 2018 as compared to 6.1% in September 2018.
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). Its base year is 2011-12.
It comprises 407 individual items. Sector wise, the items included falls into 3 categories viz. Manufacturing (405 items), Mining (1 items) & Electricity (1 item). he weights of the three sectors are 77.63%, 14.37%, 7.9% respectively. The combined weightage of 8 core Industries in IIP is 40.27%.
In use wise composition 407 individual items are divided into basic goods, capital goods, intermediate goods and consumer goods. Further, consumer goods is divided into consumer durables and consumer non-durables. In this case maximum weight is of basic goods, followed by Consumer Goods, followed by Intermediate and Capital Goods.