Industrial production, measured in terms of IIP grows 4.5% in September 2018

According to data released by Central Statistics Office (CSO), factory output measured in terms of Index of Industrial Production (IIP) grew 4.5% in September 2018. It was slowest pace in four months mainly due to poor performance of mining sector and lower offtake of capital goods.

Key Facts

Sector wise Performance: Mining sector output growth decelerated to 0.2% in September 2018 as against 7.6% in September 2017. Capital goods output growth slowed to 5.8% in the month under review from 8.7% year ago. The manufacturing sector recorded a growth of 4.6% in September 2018 up from 3.8% year ago.
Use-based Performance: The growth rates in September 2018 over September 2017 are 2.6% in primary goods, 1.4% in intermediate goods and 9.5% in infrastructure/construction goods. Consumer durables and consumer non-durables have recorded growth of 5.2% and 6.1%, respectively.

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, items included falls into 3 categories viz. Manufacturing (405 items), Mining (1 items) & Electricity (1 item). The weights of three sectors are 77.63%, 14.37%, 7.9% respectively. The combined weightage of eight 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.

Month: Current Affairs - November, 2018