Introduction
Index
of Industrial Production (IIP) is an abstract number, the magnitude of which
represents the status of production in the industrial sector for a given period
of time as compared to a reference period of time It is a statistical device
which enables us to arrive at a single representative figure to measure the
general level of industrial activity in the economy. Strictly speaking the IIP
is a short term indicator measuring industrial growth till the actual result of
detailed industrial surveys become available. This indicator is of paramount
importance and is being used by various organisations including
Ministries/Departments of Government of India, Industrial Associations,
Research Institutes and Academicians.
Origin
& History
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
by UNSO. The Office of Economic Advisor, Ministry of Commerce and Industry made
the first maiden 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 year were revised twice, viz., in 1946 and 1951.With the inception of
Central Statistical Organisation (CSO) in 1951, the responsibility for
compilation and publication of the Index of Industrial Production (IIP) was
vested with this office. The general scope of the index of industrial
production as recommended by the United Nations Statistical Office (UNSO), 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 mining,
manufacturing and electricity only.
3. As the structure of
industrial sector changes over time, it becomes necessary to revise the IIP
periodically, so as to measure the real growth in the industrial sector. UNSO
recommends that the base year of the IIP may be revised quinquennially. It has
been revised from time to time by 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.
Base
Year : 1937
Initially the base year adopted
was 1937 comprising mining manufacturing and electricity covering 15 industries
accounting for more than 90% of the total production of these industries. The
weights were allocated based on the total value of output during the base year.
The index termed the Interim Index of Industrial Production was
a quantum index and was computed using weighted arithmetic average with fixed
base. The various industries and their corresponding weights were as under:
Industry Weight
1.
Cotton Textiles ...............42
2.
Jute Manufacture.............18
3.
Steel................................ 8
4.
Chemicals.........................1
5.
Paper................................2
6.
Cement.............................4
7.
Matches............................2
8.
Paints................................1
9.
Wheat Flour.......................1
10.
Distilleries and breweries....1
11.
Sugar..............................10
12.
Petrol................................1
13.
Kerosene...........................1
14.
Coal..................................4
15.
Electricity..........................4
Total...................................100
The
index was discontinued since 1949.
(Ref.
Statistical Abstract 1952 –53)
Base
Year : 1946
Subsequently, the base year
was shifted to 1946 by the then O/o Economic Adviser, Ministry of Commerce
& Industry. The scope of the index was restricted to mining and
manufacturing sectors, comprising of 20 industries with 35 items. The ‘value
added by manufacture’ in the base year obtained from the First Census
of Manufactures, India 1946 was used for determining the weights to be assigned
to different items. In the case of coal, the gross ex-factory value at pit-head
of the coal mined was taken as an estimate of value added. The industries and
their respective weights are as under :-
|
Industry
|
Weight
|
|
Coal
|
11.95
|
|
Sugar
|
3.54
|
|
Paints and
Varnishes
|
0.61
|
|
Cement
|
0.67
|
|
Glass
|
0.55
|
|
Refractories
(Ceramics)
|
0.48
|
|
Plywood (Commercial
and Tea Chests)
|
0.15
|
|
Paper and paper
board
|
1.46
|
|
Matches
|
1.21
|
|
Cotton Textiles
|
43.49
|
|
Woollen
manufactures
|
1.38
|
|
Jute
|
16.53
|
|
Chemicals
|
3.10
|
|
Non-ferrous
metals
|
2.14
|
|
Steel
|
7.16
|
|
Bicycles
|
0.11
|
|
Sewing machines
|
0.02
|
|
Electric Lamps
|
0.04
|
|
Electric Fans
|
0.35
|
|
General and
Electrical Engineering
|
5.06
|
|
Total
|
100.00
|
(Ref. Statistical Abstract 1952-53)
The index, viz., Interim
Index of Industrial Production from 1947, was compiled using simple
weighted arithmetic mean. The adjusted indices, after allowing for variations
in the number of days in the month for all industries except sugar were also
compiled using suitable formulae. For sugar, the seasonal variation adjusted
indices were compiled.
Base
Year : 1951
The Interim Index of Industrial
Production was discontinued in April 1956 due to certain shortcomings and was
replaced by the revised index with 1951 as the base year covering 88 items
compiled by CSO. The items in this index were classified according to the
International Standard Industrial Classification (ISIC) 1948 of all economic
activities. The various industries included in the index were categorised as 2,
17 and 1 major groups for the mining and quarrying, manufacturing and
electricity sectors respectively. The index was computed using the weighted
arithmetic mean of quantity relatives with weights being allotted to various
items in proportion to ‘value added by manufacture’ in the base
year 1951. The weights for the mining, manufacturing and electricity sectors
were 7.16, 90.68 and 2.16 respectively. These indices were adjusted for
variations in the number of days in the month for all the industries except for
sugar, salt and tea industries. For the three seasonal industries, the seasonal
variations were adjusted by the method of moving averages. The indices were
compiled from 1952 to 1961 and are given in the following table.
Revised Index of Industrial Production
(BASE : 1951 = 100)
|
Year
(Weight)
|
General
Index
(100.00)
|
Mining
and Quarrying (7.16)
|
Manufacturing
(90.68)
|
Electricity
(2.16)
|
|
1952
|
103.6
|
105.6
|
103.4
|
104.5
|
|
1953
|
105.6
|
104.2
|
105.5
|
113.1
|
|
1954
|
112.9
|
107.2
|
113.0
|
127.0
|
|
1955
|
122.4
|
111.7
|
122.7
|
144.5
|
|
1956
|
132.6
|
115.0
|
133.3
|
164.1
|
|
1957
|
137.3
|
126.8
|
136.9
|
184.9
|
|
1958
|
139.7
|
133.7
|
138.5
|
209.0
|
|
1959
|
152.1
|
142.3
|
150.6
|
248.5
|
|
1960
|
169.7
|
159.9
|
167.9
|
280.5
|
|
1961
|
181.2
|
171.8
|
178.5
|
326.2
|
(Ref:
Statistical Abstract 1962)
Base
Year : 1956
The index was further
revised to base year 1956 on the recommendation of the working group
constituted by Central Statistical Organisation. The series was revised in July
1962 covering 201 items of production, classified according to the Standard
Industrial and Occupational Classification of All Economic Activities published
by CSO in 1962. The weights were assigned to the various items on the basis of ‘value
added by manufacture’, in the base year as per Census of Manufactures 1956.
The number of items alongwith sectoral weights are as follows :
Sectoral Weights and number of items in IIP with base 1956
Sector No.
of items Weight
Mining
2
7.47
Manufacturing
198 88.85
Electricity
1
3.68
Total
201 100.00
(Ref:
Statistical Abstract 1963 & 1964)
The indices were compiled
using the weighted arithmetic mean. No adjustments were made for variation in the
number of days of the month and the seasonal variations were adjusted on the
basis of overall indices rather than confining to only three industries viz.
sugar, tea and salt. The monthly series of index numbers from January 1951 to
December 1961 was the basis for estimating the seasonal indices using the
method of moving averages.
Base
Year : 1960
The index with 1960 as base year, is based on (i) regular monthly series for 312 items and (ii) annual series including 124 additional items as compared to 201 items covered by the earlier index (base : 1956=100). Though the published index is based on regular monthly series for 312 items, weights have been allotted on the basis of the total 436 items with a view to use the same set of weights for the regular monthly index and the annual index covering the additional items as well. If any item, for which regular monthly series are not available, occurs in a group, the weight of that group, is adjusted by dropping the weight of that item, while calculating the monthly group index. No such adjustment in weight is made while computing the major group index for such groups. The crude general index of every month is adjusted for seasonality by appropriate seasonal index calculated by using the method of moving averages of the crude general index. The index is a simple weighted arithmetic mean, the weights being proportional to ‘value added by the manufacture in the base year.
The Mining and Quarrying index
was specially worked out by the Indian
Bureau of Mines and excludes gold, salt, petroleum and natural gas.
Bureau of Mines and excludes gold, salt, petroleum and natural gas.
Base
Year : 1970
The series of index numbers with
base 1970, which takes into account the structural changes that have taken
place in the industrial activity of the country since 1960, was released in
March 1975 covering 352 items comprising 61 items for mining 290 for
manufacturing and 1 for electricity respectively of the earlier series. The
weighting diagram for the manufacturing sector was based on the results of ASI
1970, whereas for the mining sector, the net value added by that sector as
estimated by Indian Bureau of Mines was used. In case of electricity, the net
value added in 1970 as available from the White Paper on National Income
published by CSO. The weights were assigned to different industry groups
according to the summary tabulations of Annual Surveys of Industries
(ASI)-1970, while the item level weights within an industry group were based on
the detailed tabulation of ASI-1968, since the detailed results for the base
year 1970 were not available at that time. The allocation of weights to
sectors, major-groups, groups and sub-groups were done on the basis of ‘net
value added’. The selection of items for the manufacturing group was made
on a objective criteria viz. (a) availability of regular monthly report of
production, and (b) importance of the item, judged by the value of gross annual
production/value added. Following the above selection criteria, a number of
items were dropped from the earlier series and several new items were included
in the revised series so as to reflect the latest industrial pattern.
The year 1970 was chosen as the
comparison base on account of its nearness to the reference period chosen for a
number of other official indices, like the wholesale price index, consumer
price index etc. apart from satisfying the other criteria of selecting a base
year.
In the Manufacturing Sector,
weights upto 3-digit level of Industrial Classification were allotted on the
basis of value added by manufacture covering the entire factory sector of ASI
1970. Since estimates of net value added were not available beyond 3-digit
level of classification for the Sample Sector of ASI, the weights to the
industries beyond the 3-digit level were based on value added by the
manufacture of Census Sector alone of ASI 1970. The weights at the item level
were allocated on the basis of the results of 1968 only as item-wise data on
value of production for ASI 1970 were not available at that time. In the case
of Cotton Textiles, the value added by manufacture for yarn and cloth was
computed separately for weighting
purposes. The value added per unit of yarn
produced in spinning mills was first computed and applied to the total
production at spindle points. The value added thus arrived at for yarn was then
subtracted from the total value added for Cotton Textile Industry to obtain the
value added for cloth. In case of few other items, however, the gross value of
production was not available from ASI and the relevant data of these items was
collected from concerned sources.
For compiling the index monthly
production reports were received by CSO from as many as 17 source authorities,
who in turn collects data from the production units. In terms of the number of
items covered, the largest source was the then Directorate General of Technical
Development, who supplied monthly production data on as many as 261 out of 290
items included in the manufacturing sector. The data relating to mining and
quarrying and electricity sectors were furnished to CSO by Indian Bureau of
Mines and Central
Electricity Authority respectively.
Base
Year : 1980-81
The Government of
India felt that the continued adoption of 1970 as the base year was leading to
inadequate reflection in the IIP of the changes that have taken place in the
industrial structure and set up a Working Group in 1978 under the Chairmanship
of the then Director General of CSO, to consider the change of the base year
and recommend modifications in the weighting diagram. The working group first
explored the possibility of adopting 1975-76 as the base year for the revised
IIP and finally decided to shift the base to 1980-81, to accommodate adequately
items from the small-scale sector.
For selection of items for
the 1980-81 series, the following criteria were adopted :-
- regular monthly report of production should be available in respect of the selected items.
- each items should generally account for either a gross annual production of Rs.5 crore or of gross value added of Rs.1.25 crore. This requirement was, however, been waived in the case of industry groups which are not represented by sufficient number of items or in case of important items in respect of which the developing agencies are kept to watch the growth movement.
- if the industry group is represented by many qualifying items, only those items with a relatively larger share of production in terms of value, should be included in the index, which together account for most of the group weight.
The Working Group gave its
report in January 1986. The salient features of the changes are as under :
- new items were included, while 95 items of the 1970 index were dropped. The Working Group also clubbed together or sub-divided a few items of the 1970 index. However, the total number of items covered by the manufacturing sector in the 1980-81 series, continued at 290 after these changes.
- items, generally those contributing atleast 25% to the total production of the item in the base year, have been recommended for inclusion of production by the small-scale sector as well. Development Commissioner, Small-Scale Industries (DC SSI) could line up regular monthly production data for, only 18 items from July 1984.
- The 1970 series of IIP is based on National Industrial Classification (NIC) 1970 published by CSO.
The weighting diagram upto
the ultimate digit of NIC was compiled on the basis of gross value
added of the factory sector of ASI 1980-81. The weights for the
selected items within each industry were apportioned on the basis of value of
output figures as available from ASI 1980-81. While this method was followed
for all the industries, in respect of Cotton Textiles (decentralised sector) a
different approach had to be adopted. The ASI returns relating to factory
sector units classified as ‘ cotton spinning other then in mills’ , ‘production
of khadi’, ‘weaving and finishing of cotton textiles in handlooms’, etc. were
divided into two groups, viz. those which reported only yarn as their main
product and those which reported both yarn and cloth (or only cloth) as their
main product. The gross value added per kg. of yarn was obtained from the set
of returns and this was used to arrive at the gross value added per metre of
cloth (in the decentralised sector) from the second set of return. The gross
value added per metre of cloth, thus arrived, was then used to obtain the total
gross value added in the decentralised sector for 1980-81, on the basis of the
total production data in the decentralised sector as collected from the Textile
Commissioner’s Office. The gross value added estimated was then assigned to the
NIC group, jacking up the corresponding figures for the industry group 23 by
the same amount. There were a few items for which the value of production in
ASI 1980-81 was less than the corresponding value supplied by the DGTD, and was
used for assigning the weights at item levels. For some items where data were
available from both DGTD and DCSSI, item level weights were distributed using
the total values from both the agencies.
The Index of Industrial
Production is a quantitative index, the production of the items is reported by
the source agencies in physical terms. However, the unit of reporting in
respect of certain items like machinery, machine tools etc. is in value terms.
In such cases, the monthly figures of production value, is first deflated by
the Wholesale Price Index (base 1981-82) for the concerned category, issued by
the O/o the Economic Adviser, Ministry of Industry.
The index is a simple
arithmetic mean of production relatives computed using Laspayere’s formula. The
index is compiled in stages, initially for items, then for sub-groups, groups
and major groups, sectors and finally for all sectors combined. The index of
monthly production covering 61 items supplied by Indian Bureau of Mines is
dovetailed with indices of manufacturing and electricity sectors for compiling
the general index of industrial production.
Till 1970 series the
coverage of manufacturing sector was restricted to only large and medium units
due to non-availability of production information for small-scale units on
regular basis. For the first time in 1980-81 series, the small-scale sector was
represented by 18 items in the compilation of index. For these items no
separate weight was assigned in the weighting diagram. However, the production
of these items is clubbed with the production figures of the corresponding
items supplied by the large and medium units. In cases where the production
figures from the two sources are in different units, restricting the clubbing
of production, the weight allocated to the item(s) is sub-divided on the basis
of share of the two sectors in the base year which is used for compilation of
the index.
The IIP series with base 1980-81
has been computed for each month from 1981-82 to March, 1998. The
representation of the small-scale sector was included in the index from the
month of July, 1984, prior to which only DGTD production data was utilised.
Revised
Series of IIP with Base Year 1993-94 :
Technical
Advisory Committee
The changes in the structure of
the industrial sector over time makes it necessary to revise the IIP
periodically so as to measure the real growth in the industrial sector.
Accordingly, CSO attempted an exercise of revision of base year from 1980-81 to
1985-86 and compiled indices for the period April 1986 to May 1995 with base
1985-86. However, in an inter-ministerial meeting held in CSO in November 1995,
it was decided to abort this base year revision mainly due to its delayed
implementation. It was thought that as detailed results of ASI, 1993-94 would
be available shortly, it will be better to shift the base year to 1993-94.
Incidentally, the year 1993-94 was also accepted by the Office of Economic
Adviser, Ministry of Industry for shifting the base year of WPI from 1981-82.
The Technical Advisory Committee (TAC) which had been set up in the Department
of Statistics in June, 1995 to advise on Compilation of Comparable State IIPs
and Composite all-India IIP was also entrusted subsequently in November 1996
with the responsibility of examining all the issues and providing technical
guidance in the matter of shifting the base year of all-India IIP to 1993-94.
The salient features of the recommendations of the TAC in this regard are as
under:-
- The current series of all-India IIP may be revised by shifting its base to 1993-94;
- Recognising the contribution of the unorganised sector, the weighting diagram of the revised series should take into account the total production of both the organised and unorganised manufacturing sectors.
- In view of the difficulties in lining up item-wise monthly production data for small scale items, the selection of items may be based only on the detailed results of ASI 1993-94, as has also been the practice in the past. At least 18 items of small scale sector included in the present series may be considered for inclusion in the new series;
- The item basket for the revised series of all-India IIP with base 1993-94 may be selected in a similar manner as recommended for selection of State level item basket i.e., the selected items should account for nearly 80% of the total output for the manufacturing sector. However the criteria may be used with certain flexibility. For example, items not accounting for a gross annual production of Rs. 80 crore may not necessarily be included in the basket. The criteria may be relaxed, if necessary, to ensure that the provisionally selected items in all the 2-digit industry groups captured at least 60 percent of the Value of Output of the particular group. The over-riding criteria for finalisation of item basket would be the regular flow of monthly production data from the source agencies.
- The revised series would follow the National Industrial Classification (NIC) 1987.
- Gross Value of Output (GVO) rather than Gross Value Added (GVA) may be used for weighting purposes from sectoral (1-digit) to the ultimate (4-digit) levels of industry for compilation of both the State IIPs as well as all-India IIP.
Most of the recommendations
of the TAC were accepted. However, the use of GVO as weights at industry group
levels was not accepted for Compiling the All India IIP and GVA was continued
to be used as in the 1980-81 series.
Scope
and coverage:
The scope of the index has
been confined to mining, manufacturing and electricity sectors and does not
cover gas, water supply and construction. The distribution of items covered by
the index with 1980-81 and 1993-94 base year are as follows :-
No.
of Items
Sector 1980-81 1993-94
Mining
61
64
Manufacturing
288 478
Electricity
1
1
Total
350 543*
*(clubbed
into 287 item groups : Mining-1, Mfg. -
285, Electricity - 1)
Item
basket:
Item basket:
In
the revised IIP, the following criteria have been followed for selection of
items for inclusion in the item basket :
- Each item should generally account for at least Rs. 80 crore of Gross Value of Output at the item level and Rs. 20 crore of Gross Value Added at the ultimate digit level. The criteria has, however, been applied with flexibility in the case of industry group which were not represented by sufficient number of items;
- To improve the representativeness , some of the important items of IIP series with base 1980-81 have also been included, and
- Regular monthly flow of production data be available in respect of the selected items.
(iv)
All the 18 items of small scale sector included in the current series of IIP
with base 1980-81 have also been accounted for in the revised series with base
1993-94.
The
item basket for the 1993-94 series contains 543 items as compared to 352 in the
earlier series, the addition being 3 items for mining sector and 188 for the
manufacturing sector. To retain the distinctive character and enable the
collection of data, the source agencies proposed clubbing of 478 items of the
manufacturing sector into 285 item groups. 97 item groups were dropped and 99
added apart from 187 being common with the 1980-81 series.
The item basket so
identified captured about 80% of the output of the manufacturing sector. The
item basket has been finalised by having extensive discussions with source
agencies especially DIP&P, Textile Commissioner, Directorate of Vanaspati,
Development Commissioner (Iron & Steel), etc. keeping in view the
distinctive character of the items
and
the availability of regular flow of monthly production data. Also, to improve
representativeness at 2-digit level, some important items of the current series
with base 1980-81 have also been included in the basket.
Weighting
Diagram:
The Sectoral Weights have
been allocated on the basis of Gross Value Added for 1993-94 as published in
the National Account Statistics For the first time, the weighting diagram of
IIP with base 1993-94 has taken into account the contribution of the
unorganised manufacturing sector alongwith that of Annual Survey of Industries
(ASI). For estimating the 1993-94 Gross Value Added for the unregistered
sector, the data available in the follow-up Surveys of Economic Census viz.
Directory Manufacturing Establishments (DME), Non-Directory Manufacturing
Establishments (NDME) and Own-Account Manufacturing Enterprises (OAME), for the
years 1989-90 and 1994-95 have been used. After interpolating the GVA at
2-digit level, the further allocation at 3/4 digit levels of NIC has been done
using the ratios of 1994-95 surveys, being in close proximity to 1993-94. The
consolidated contribution at 2/3/4 digit level of NIC have been arrived at by
super-imposing ASI data with unorganised data for the corresponding groups/sub
groups. Further allocation of weights to the items within 4-digit industry
groups have been done using Value of Output as available from ASI, 1993-94.
Following the recommendation of
the TAC, the issue of using Gross Value Added and Gross Value of Output as a
criteria for allocation of weights in compilation of revised series of IIP was
deliberated in different forums including a Special Committee. It was
recommended that GVA may be used for allocation of weights at industry group
level in the revised series of IIP with base 1993-94, for the sake of
continuity, consistency, the international practices and the UN recommendations
on the subject.
Formula:
The index is a simple
weighted arithmetic mean of production relatives calculated by using Laspeyre’s
formula :
I= (Wi Ri)/ Wi
Where
I is the Index, Ri is the production relative of the ith item
for the month in question and Wi is the weight allotted to it.
Production
data
Sources
of data:
For the 1980-81 series, the
Central Statistical Organisation used to receive monthly production data from
as many as 18 source agencies, who collect data from the production units. For
the revised series with base 1993-94 , the same set of 14 source agencies have
been retained except for Railways, for which the consolidated data will now be
supplied by the Railway Board instead of data being supplied earlier by 5
agencies. In terms of the number of items covered, the largest source is the
Department of Industrial Policy & Promotion(DIP&P), which supplies data
on as many as 213 out of 285 group of items in the manufacturing sector. The
index relating to Mining and Quarrying sector is being supplied by the Indian
Bureau of Mines, Nagpur which is dovetailed with manufacturing and electricity
indices compiled by CSO to arrive at the General Index of Industrial
Production. The data on Electricity sector is furnished by the Central
Electricity Authority.
Use
of Price Deflators:
The
Index of Industrial Production is a quantitative index, the production of items
being expressed in physical terms. However, the unit of reporting in
respect of certain items like Machinery, Machine Tools, Ship Building etc. is
in value terms. The monthly figure of production value, in such
cases is first deflated by the Wholesale Price Index (WPI) of the corresponding
item/category, released by the Office of the Economic Advisor, Ministry of
Industry.
One time revision of Indices
The WPI figures with
base 1981-82 were used for compilation of IIP upto the month of March 2000. In
the revised series of WPI (base 1993-94), certain items have been dropped with
the result that the item deflators for
(i) Agarbatti,
ii) Industrial valves,
(iii) Laboratory & Scientific Instruments and
(iv) Fountain pen are not
available in the revised series.
Therefore, recently alternative item/sub-group
deflators in the new series have been identified and used in place
of above deflators of the old series. Recently, the IIP series had to be again
recomputed from April 1994 onwards, taking into account the production of
Natural Gas by Private Sectors and Joint Venture Companies and the internal
utilization part of production of natural gas by the Public Sector
Companies. Further, four items namely Radio Receivers, Photosensitized
Paper, Chassis (Assembly) for HCVs (Bus, Truck) and Engines reported to DIPP by
‘Single Producers’ were also dropped from the item basket from April 1998
onwards, their weights re-distributed amongst the remaining items of the
respective 2- digit categories of NIC 1987 and indices recomputed based on the
revised weighting diagram.One time revision of the indices from April 1994
onwards based on revised WPI (Base 1993-94) deflators in place of the old WPI
(Base 1981-82) deflators were been incorporated in the Press Note for quick
estimates of IIP for May 2000 issued on 12th July
2000. The revised indices based on revised indices of mining sector
and new weighting diagram after deletion of four item groups have been
incorporated in the Press Release on Quick Estimates of IIP for November 2000
released on 12th January 2001
Use-based
Indices
With
switching over to the monthly quick estimates of IIP with base 1993-94, it was
necessary to categorise the items included in the new series of IIP into
various use-based categories i.e., Basic goods, Capital goods, Intermediate
goods, Consumer durables and Consumer non-durables. A comparison of a number of
items alongwith their weights in the use-based categories for 1980-81 and
1993-94 is as under
Comparison of number of items, weights in the use-based categories
for 1980-81 and 1993-94 series of IIP
|
S.No.
|
Use-based
Category
|
No.
of items
|
Weight
|
||
|
|
|
1980-81
|
1993-94
|
1980-81
|
1993-94
|
|
1.
|
Basic goods
|
65
|
63
|
394.18
|
355.12
|
|
2.
|
Capital goods
|
55
|
50
|
164.27
|
96.87
|
|
3.
|
Intermediate
goods
|
96
|
90
|
205.07
|
264.39
|
|
4.
|
Consumer
durables
|
22
|
26
|
25.50
|
51.15
|
|
5.
|
Consumer
non-durables
|
50
|
58
|
210.98
|
232.47
|
Official Release of New Series of IIP (Base:1993-94)
The
provisional indices based upon the new series of IIP were compiled and
discussed in the meeting of important users viz, representatives from the
Ministry of Industry, Planning Commission, Ministry of Finance, RBI etc. and
the revised series was officially released on 27th May 1998.
The tables enclosed with the press release were subsequently updated by
incorporating data on 2-digit and use-based indices upto March 1998 and
released on 8th June 1998. One time revision of the indices
from April 1994 onwards based on revised WPI (Base 1993-94) deflators in place
of the old WPI (Base 1981-82) deflators have been incorporated in the Press
Note for quick estimates of IIP for May 2000 and issued on 12th July
2000.
As per the norms laid down
by Special Data Dissemination Standards (SDDS) of IMF, the quick estimate of
IIP of any month is being released within six weeks from the reference month
according to an advance released calendar. The press release on the quick
estimate of IIP and the advance release calendar are being disseminated in the
website of the Ministry since May 1998.
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 close of
month. As all the production data to be used in computing the index will 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
subsequently revised twice, namely, in the next month and the following third
month.
Quality
of Data :
In the absence of
availability of regular monthly production data from the unorganised
manufacturing sector, the item basket has been identified on the basis of data
from the registered sector only. Further, the source agency responsible for the
small scale sector could not line up the production data for the items of the
revised series. As such, the revised IIP has taken into account only the data
of 18 items of SSI sector included in the existing series. The new series of
IIP would be revised on availability of data on additional items of the small
scale sector. Till such time, the contribution of the unregistered sector,
which is growing significantly as compared to the registered sector will not be
reflected in the compilation of the revised IIP for want of data from this
sector.========================================================================
