Introduction
1. In India, the first
official attempt to compute regularly the Index of Industrial Production was
made much earlier than even the recommendations on the subject at the
international level. The Office of the Economic Advisor, Ministry of Commerce
and Industry made the first attempt of compilation and release of Index of
Industrial Production with base year 1937, covering 15 important industries,
accounting for more than 90% of the total production of the selected
industries. Subsequently, the base years were revised twice, viz., to 1946 and
1951.
2. With the inception of
the Central Statistical Organization (CSO) in 1951, the responsibility for
compilation and publication of the Index of Industrial Production (IIP) was
vested with this office. The all-India IIP is being released as a monthly
series since 1950. The general scope of the index of industrial production as
recommended by the United Nations Statistical Office (UNSO) in May 1950, is
defined to include Mining, Manufacturing, Construction, Electricity and Gas
sectors. But, due to constraints of the data availability, the present general
index of industrial production compiled in India has in its scope the Mining,
Manufacturing and Electricity sectors only.
3. As the
structure of industrial sector changes over time, it becomes necessary to
revise the base year of IIP periodically so as to measure realistically,
the growth in the industrial sector. The UNSO recommends that the base
year of the IIP may be revised quinquennially. The IIP series has been revised
from time to time shifting the comparison base to a recent period, by reviewing
the coverage of items and industries and by improving, as far as practicable,
the technique of Construction with a view to reflect adequately, the industrial
growth and structure. When the index was commenced in India, the base year
adopted was 1937 and this was revised successively to 1946, 1951, 1956, 1960,
1970, 1980-81 and 1993-94.
(i) Mining and quarrying sector consists
of fuel, minerals, metallic minerals, non-metallic minerals and minor minerals.
In respect of fuel minerals, data are collected from Coal Controller of India
for coal and lignite. Statistics on petroleum (crude) and natural gas are
received from Ministry of Petroleum and Natural Gas. The coal controller is
supplying coal and lignite data for about 578 mines.
(ii)
IBM receives data in respect of metallic and non metallic minerals from about
3000 mines. As per the Mineral Conservation and Development Rules 1988 (framed
under the MMRD Act 1957) every mine owner is required to submit the monthly,
annual, explosive returns and various types of notices including opening and
closing of the mines. IBM is taking all out efforts for collection of
data from mine owners by issuing reminder letter, fax and in certain cases
contacting even on telephones. Besides, IBM has requested the Federation of
Indian Mineral Industry (FIMI) to impress upon the mine owners to supply the
data in time. Also the Inspecting officers of Regional Offices of IBM have been
directed to monitor the receipt position of monthly data on production and
impress upon the mine owners to supply the data within the due date during
their inspection visit to the mines. Generally, the frame is revised annually
but minor changes are done as and when opening and closing notes are
received;
(iii)
So far as the data on minor minerals are concerned, all the States Directorate
of Mining and Geology have been requested to supply the data on granite, marble
and slate to IBM on monthly basis. Since Granite is an export oriented mineral,
Department of mines constituted a ‘Granite Development Council’ under the
Chairmanship of Joint Secretary, (Department of Mines). Department of Mines has
also decided to circulate a proforma for collection of data on monthly basis.
However to receive regular data on granite, it may take some more time;
Provisional Nature of the Index Series
In order to achieve the norms of SDDS
for release of IIP within six weeks, all the 15 source agencies are required to
furnish data to CSO within four to five weeks from the reference month. As all
the production data to be used in computing the index would not have become
available at the time the index for any month is being prepared, the
provisional index for a given month is compiled and released. This index is
subsequently revised twice i.e. with the Quick Estimates of IIP for next month
and the following third month.
