Daily Current Affairs – 2020
Topic: For Prelims and Mains
Index of Industrial Production
Why in news?
Quick Estimates of Index of Industrial Production and Use-Based Index for the Month of August, 2020 (BASE 2011-12=100)
For the month of August 2020, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 116.1.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of August 2020 stand at 83.0, 117.4 and 162.7 respectively. These Quick Estimates will undergo revision in subsequent releases as per the revision policy of IIP.
- As per Use-based classification, the indices stand at 108.4 for Primary Goods, 75.0 for Capital Goods, 126.6 for Intermediate Goods and 127.7 for Infrastructure/ Construction Goods for the month of August 2020.
Further, the indices for Consumer durables and Consumer non-durables stand at 109.4 and 139.6 respectively for the month of August 2020.
About the Index of Industrial Production:
- The Index of Industrial Production (IIP) is an index that indicates the performance of various industrial sectors of the Indian economy.
- It is calculated and published by the Central Statistical Organisation(CSO) every month.
- It is a composite indicator of the general level of industrial activity in the economy.
Aspirants planning for the best Economics preparation can check the linked article.
Importance of IIP:
- The Index is used by government agencies and departments such as the Finance Ministry and the RBI for policymaking.
- It is also used for estimating the Gross Value Added of the manufacturing sector quarterly.
- Also, the Index is used by business analysts, financial experts, and the private industry for multiple purposes.
- It is the only measure of the physical volume of production.
- It is also extremely useful for the projection of advance GDP estimates.
IIP Latest Change:
- The latest change in the IIP was made in 2017.
- Any index is to be subject to changes and modifications like changing the base year, including more items in the basket, etc.
- The new and current base year for IIP is 2011 – 12.
- The previous base year was 2004 – 05.
- Another change was the inclusion and deletion of certain items in the data series.
Some items introduced:
- Refined palm oil
- Surgical accessories
- Cement clinkers
Some items removed:
- Chewing tobacco