Base effects boosted IIP growth to 11.7% in October

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Last Updated14/12/2023

In October, India's factory output exhibited a significant rebound, recording a growth rate of 11.7%, marking a 16-month high.
This positive development follows a slight setback in September when the growth rate had dipped to 5.8%.

IIP is an indicator that measures the changes in the volume of production of industrial products during a given period.
It is a composite indicator that measures the growth rate of industry groups.
- The industry groups that it measures are classified as
  - Broad sectors like manufacturing, mining, and electricity.
  - Use-based sectors like capital goods, basic goods, intermediate goods, infrastructure goods, consumer durables, and consumer non-durables.
It is used by government agencies including the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes.
It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
Base Year for IIP is 2011-2012.

These comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
The eight core sector industries in decreasing order of their weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilisers.