{"id":205755,"date":"2022-09-13T20:23:19","date_gmt":"2022-09-13T14:53:19","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=205755"},"modified":"2022-09-13T20:23:19","modified_gmt":"2022-09-13T14:53:19","slug":"india-industrial-production-index-is-not-beyond-repair","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-industrial-production-index-is-not-beyond-repair\/","title":{"rendered":"India Industrial Production Index is not beyond repair"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cIndia Industrial Production Index is not beyond repair\u201d <\/strong>published in <strong>Live Mint <\/strong>on <strong>13th September 2022<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Indian Economy<\/p>\n<p><strong>News- <\/strong>The article explains the discrepancies in IIP data and suggestions to improve it.<\/p>\n<p>Various analyses have shown that IIP has understated growth in industrial output over the last decade and its unreliability.<\/p>\n<h5><strong>Which are the studies conducted on IIP related issues?<\/strong><\/h5>\n<p>Rangarajan Commission in 2001 was the first official panel to flag serious discrepancies in IIP data.<\/p>\n<p>Committee on financial sector assessment by the RBI and Union government in the mid 2000s reiterated the concerns.<\/p>\n<p>National Statistical Commission appointed N.S. sastry for conducting audit of IIP data. It found problems with collection and validation of data.<\/p>\n<p>The Parliamentary standing committee asked for another review in 2012.<\/p>\n<p>The Suamitra Chaudhari panel was set up in 2014.<\/p>\n<p>The National Statistical Commission on real sector statistics in 2018 by Sudipto Mandle raised concerns about IIP reliability and understating growth in industrial output.<\/p>\n<p>A 2020 working panel by some economists raised the issue of bizarre growth in some components of IIP.<\/p>\n<h5><strong>What are the issues with the current system?<\/strong><\/h5>\n<p>Post-liberalisation, there is broader erosion in state capacity to track private sector growth.<\/p>\n<p>There is a lack of a comprehensive and dynamic firm level database. The existing<\/p>\n<p>One from the economic census to the MCA-21 are not representative of the entire industrial sector.<\/p>\n<p>There is a lack of effective statistical leadership. The Statistical Ministry is not able to coordinate raw IIP data spread across various Ministries.<\/p>\n<p>Lack of capability with statisticians to validate raw data before accepting it as meaning statistics.<\/p>\n<h5><strong>How to make improvements in the IIP index?<\/strong><\/h5>\n<p>Monthly release of index should include number of sampling and no-corresponding units for each item.<\/p>\n<p>GST database can be used. An accurate and dynamic business register is needed.<\/p>\n<p>New databases need to be tested and release in a validated database for public feedback before being plugged into the statistical system.<\/p>\n<p>Statistical governance and disclosure norms need to be improved.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cIndia Industrial Production Index is not beyond repair\u201d published in Live Mint on 13th September 2022. Syllabus: GS3- Indian Economy News- The article explains the discrepancies in IIP data and suggestions to improve it. Various analyses have shown that IIP has understated growth in industrial output over&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-industrial-production-index-is-not-beyond-repair\/\">Continue reading <span class=\"screen-reader-text\">India Industrial Production Index is not beyond repair<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-205755","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704830490},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/205755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=205755"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/205755\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=205755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=205755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=205755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}