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India’s mining output growth slid to a 19-month low of 1.2% in March, from February’s 8% pace, hinting at a possible slowing in the month’s overall industrial output, the data for which is due to be released by the National Statistical Office
Mining constitutes 14.3% of the Index of Industrial Production (IIP).
Industrial output growth hit a four-month high of 5.7% in February with mining (8%) and electricity growth (7.5%) lifting growth.
Manufacturing constitutes 77.6% of the IIP and grew 5% in February
Index of Industrial Production (IIP)
The Central Statistical Organisation (CSO) is responsible for the compilation and publication of the Index of Industrial Production (IIP) since 1950.
The IIP is compiled as a simple weighted arithmetic mean of production relatives by using Laspeyre’s formula.
The IIP is a quantum 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 categories, released by the Office of the Economic Adviser, Ministry of Industry.
The scope of the IIP as recommended by the United Nations Statistical Office (UNSO) includes mining, manufacturing, construction, electricity, gas and water supply.
But due to constraints of data availability, the IIP compiled in India has excluded construction, gas and water supply sectors.
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