Index of Industrial Production (IIP)

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About I. I. P.
I. I. P. or the Index of Industrial Production refers to a kind of index, which provides details about the growth of the different sectors that forms the economy of a country. To be precise, I. I. P. is among the chief indicators of the development of an economy, which details out the trend of growth as well as the growth of the varied sectors included in that particular economy. Laspeyre’s formula is being used for the computation of such index which necessitates the fixation of a particular year so that the index figures can be calculated on the basis of that year. I. I. P. is often an abstract figure, whose magnitude reflects the production status of the sectoral industries in a given time period as compared to the reference time period.

Index of Industrial Production in India

I. I. P. in India mainly focuses on sectors such as mining, manufacturing, electricity as well as other general sectors. In case of the Republic of India, the base year was earlier fixed at 1993 - 1994 and was thus, equivalent to 100 points. However, the base year in India has now been changed to 2004 – 2005, in April 2011.

Recent Growth Rate of Industries as Projected by the IIP of India

As per the quick estimates of India’s Index of Industrial Production for September, 2011 as released by the Office of Central Statistics under the Statistics and Program Implementation Ministry of the Government of India on 11th November, 2011, I. I. P. of India was 1.80 % during September of last year on a y-o-y basis if compared to the growth rate of 3.60 % during the month of August, 2011 as well as 6.10 % during September, 2010.

This office of the India Government has even revised this nation’s yearly industrial growth to 3.58 % for August of the year 2011 from its earlier estimate of the year on year increase of 4.04 %. In between the period of April and June in 2011, the economy of India showed a growth rate of 7.70 % that is one of the slowest rates of growth in the past 6 quarters.

The data of industrial growth shown in the new release of the series of Index of Industrial Production reveals that India, which is the 3rd largest economy in Asia, instead of undergoing a slowdown, has undergone a recession because of the financial crisis that was experienced on a global basis in between the period of December, 2008 and the month of June, 2009. During that period of 7 months, the growth rate on the year on year basis went down to the negative percentage of 7.23 % in February, 2009. It continued to remain so all through.

Trend of IIP Growth rate in 2012-13

If the trend of such higher rate of industrial growth can be maintained in the present fiscal year, then the overall growth rate of the G. D. P. (Gross Domestic Product) of the country is expected to have a thrust. The effect of this growth rate might not get reflected till the month of January in 2012 though. It is during this time that the current financial year 2011 – 2012’s quick estimates about the Gross Domestic Product in India is supposed to be released. However, the series of new releases would get incorporated in the quick estimates of the G. D. P. of India for the financial year of 2012 – 2013.

Year on Year Growth Rate of Indian Industries

On the basis of the 2004 – 2005 base year, following are the current rate of yearly growth of the different industrial sectors in India:

Time PeriodY-o-Y Growth (%)
April, 2008April, 20092.52%
April, 2009April, 20105.28%
April, 2010April, 20118.16%

Monthly Growth Rate of India's Industries

The below mentioned table provides information about the recent change of percentage in the Index of Industrial Production in India over the past few months. The percent change has been calculated on the basis of the base year 2004 - 2005:

(*Remaining Entries will be added soon.)

Last Updated on 1/11/2012