Nov. factory output growth drops to 8-month low of 2.4%
- India's industrial output growth decelerated to an eight-month low of 2.4% in November.
- This follows a 16-month high growth of 11.6% recorded in October.
Index of Industrial Production
- 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.
Eight Core Sectors
- 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.
Prelims Takeaway
- Index of Industrial Production
- Eight core sectors