{"id":21463,"date":"2024-03-13T03:31:51","date_gmt":"2024-03-12T22:01:51","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=21463"},"modified":"2025-04-06T12:24:15","modified_gmt":"2025-04-06T06:54:15","slug":"iip","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/iip\/","title":{"rendered":"Index of Industrial Production (IIP)"},"content":{"rendered":"<h2>About Index of Industrial Production (IIP)<\/h2>\n<ul>\n<li>It is one of the prime indicators of economic development for the\u00a0measurement of trends\u00a0in the behavior of\u00a0industrial production over a period of time with reference to a chosen base year.<\/li>\n<li>IIP is a\u00a0short-term indicator measuring industrial growth until the actual result of detailed industrial surveys become available.<\/li>\n<li>It indicates\u00a0the relative change in physical production in the field of industries during a specified year as compared to the previous year.<\/li>\n<li>It is computed and\u00a0published by the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation,\u00a0on a monthly basis.<\/li>\n<li>Calculation:\n<ul>\n<li>The IIP is a\u00a0quantum index, the\u00a0production of items\u00a0is\u00a0expressed in physical terms.\u00a0However, the unit of reporting in respect of\u00a0certain items like machinery, machine tools, shipbuilding, etc.\u00a0is in value terms.\u00a0<\/li>\n<li>The IIP is\u00a0compiled as a simple weighted arithmetic mean\u00a0of production relatives by\u00a0using Laspeyre\u2019s formula.\u00a0<\/li>\n<li>In\u00a0order to remove the effect of price rises from the index, the\u00a0production figures of such items\u00a0are deflated on the basis of Wholesale Price Indices (Base 2011-12), compiled by the Office of Economic Adviser, Ministry of Commerce and Industry, before the compilation of the index.<\/li>\n<\/ul>\n<\/li>\n<li>Base Year:\n<ul>\n<li>The\u00a0base year is always\u00a0given a value of 100.<\/li>\n<li>The\u00a0current base year for the IIP series in India\u00a0is 2011-12.<\/li>\n<li>So,\u00a0if the current IIP reads as 116,\u00a0it means that there has been\u00a016% growth compared to the base year.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>What is Laspeyre\u2019s formula?<\/h2>\n<ul>\n<li>It was proposed by German economist \u00c9tienne Laspeyres (1834\u20131913) for\u00a0measuring current prices or quantities in relation to those of a selected base period.<\/li>\n<li>A Laspeyres price index is computed by taking the ratio of the total cost of purchasing a specified group of commodities at current prices to the cost of that same group at base-period prices and multiplying by 100.<\/li>\n<li>The base-period index number is thus 100, and periods with higher price levels have index numbers greater than 100.<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the Index of Eight Core Industries (ICI)<\/h3>\n<p>ICI measures the collective and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity. The objective of the ICI is to provide an advance indication of production performance of industries of \u2018core\u2019 nature before the release of IIP by the Central Statistics Office. These industries are likely to impact general economic activities as well as industrial activities. The Index is compiled and released by the Office of the Economic Adviser (OEA), Department of Industrial Policy &amp; Promotion (DIPP), Ministry of Commerce &amp; Industry, Government of India.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/theprint.in\/economy\/index-of-industrial-production-grows-by-3-8-per-cent-in-january-2024\/1998157\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Index of industrial production grows by 3.8 per cent in January 2024<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Index of Industrial Production is a short-term indicator measuring industrial growth until the actual result of detailed industrial surveys become available.<\/p>\n","protected":false},"author":5,"featured_media":21464,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-21463","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=21463"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/21463\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/21464"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=21463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=21463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=21463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}