SOUMITRA KANSABANIK (2013287) SUMANT KHARBANDA ( 2013294 ) TAPAS SHIVPURI (2013307) UTSAV DUBEY (2013311) VIJAYA SRIVASTAVA (2013322)

IIP : INDEX OF INDUSTRIAL PRODUCTION.

Details out the growth of various sectors of economy.

Base year needs to be decided on the basis of which all the index figures would be arrived at. Measures the status of production in the industrial sector . First attempt made with base year 1937.

INDUSTRIAL STRUCTURE CHANGES OVER TIME REVISION OF BASE CONSIDERING THE FACT THAT INDUSTRIAL PRODUCTION COMPOSITION CHANGES. 1946 1951 1956 1960 1970 1980-81 1993-94 2012

 Initially the composition covered : 15 Industries ( Mining, Manufacturing & Electricity as major categories) and 35 items.

Base year of IIP has been revised with the latest revision shifting the base year to 2004-05. Now index covers 682 items. Mining & Quarrying 14.16% Manufacturing 75.53% Electricity- 10.32%

 It measures the output of a select group of pre-selected units every months. IIP is the earliest indicator of manufacturing activity.
Lower

IIP values indicate perhaps the continuation of downward bias historically observed in IIP.

 If current year is not far away from the base year able to measure the industrial growth fairly.

the IIP is

If current year is too distant from the base year the deviation becomes significant, mainly with respect to ASI.

 IIP

also is a good lag indicator of Sectorial Aggregate Demand.

As in India we have service sector as dominant sector while considering GDP we should consider and index that give this sector the most important where as in IIP Manufacturing sector has been given the most importance i.e., 75.53%.