- Index of Industrial Production (IIP) details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.
- It is compiled and published every month by the Ministry of Statistics and Programme Implementation.
- The current base year is 2011-2012.
- The Eight Core Industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity) comprise 40.27 per cent of the weight of items included in the IIP.
- It is an index which measures the weighted average of prices of a basket of consumer goods and services such as transportation, food and medical care.
- It is calculated by measuring price changes for each item in the predetermined basket of goods and services and averaging them.
- It is released by the Ministry of Statistics and Program Implementation.
- The base year used to calculate CPI in India is 2011-2012.
- Under the flexible inflation targeting (FIT) framework, the RBI aims to contain CPI based inflation within 4 percent with a band of (+/-) 2 percent.
Why in News?
- India’s industrial output fell for the sixth month in a row this August.
- The index of industrial production (IIP) shrank 8% in August on a year-on-year basis, marking a marginally improvement compared with July when output contracted 10.8% as per revised estimates.
- August’s output marks the lowest contraction since factory production began falling in March. Output had shrunk 18.7% in March, followed by contractions of 57.3% in April and 33.4% in May. Between April and August, industrial output had shrunk 25%.
- As per the latest data, Consumer Price Inflation increased to 7.34% in September, with food price spikes reaching 10.68%.