The Index of Industrial Production (IIP) is an index in India which details out the growth of various sectors in an economy. It is a short-term micro economic indicator widely used in measuring the industrial growth of the State by comparing the general level of industrial activities in the economy in current year with reference to a base year. The index indicates the relative change over time in the volume of production in industrial sector and is an effective tool to measure the trend of current industrial production.
Who Calculates IIP ?
The Directorate of Economics and Statistics, Department of Planning, Rajasthan has been compiling/releasing index of industrial production for the Rajasthan State since 1971 as per the guidelines of the Central Statistical Office (CSO), Govt. of India. Recently, a web portal has been developed for IIP for data entry, through District Statistical Offices.
How is IIP calculated ?
The IIP series is based on 294 items / product groups aggregated into three broad groups of Manufacturing, Mining and Electricity. It 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. Presently IIP constructed on the basis of base year 2004-05, but as per direction of CSO base year will be shifted to 2011-12.
Three major sectors in IIP:
- For Manufacturing Sector the Production data is collecting for selected items from selected industrial units through district statistical officer’s and Now IIP web Portal has been developed for collection of regular data from districts through an on-line system.
- Mining sector production data is supplied by Indian Bureau of Mines, (IBM) Nagpur
- Electricity sector generation figures furnished by the central Electricity Authority New Delhi through C.S.O.
IIP Index for Rajasthan