{"id":345359,"date":"2025-08-29T16:39:02","date_gmt":"2025-08-29T11:09:02","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=345359"},"modified":"2025-08-29T16:39:02","modified_gmt":"2025-08-29T11:09:02","slug":"index-of-industrial-production-iip","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/index-of-industrial-production-iip\/","title":{"rendered":"Index of Industrial Production (IIP)"},"content":{"rendered":"<p><strong>News<\/strong><strong>: <\/strong>Industrial growth touched a four-month high of 3.5% in July 2025, as per the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation.<\/p>\n<h2>About Index of Industrial Production (IIP)<\/h2>\n<figure id=\"attachment_345363\" aria-describedby=\"caption-attachment-345363\" style=\"width: 388px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-345363\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-KNN-India.jpg?resize=388%2C216&#038;ssl=1\" alt=\"\" width=\"388\" height=\"216\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-KNN-India.jpg?resize=300%2C167&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-KNN-India.jpg?resize=1024%2C571&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-KNN-India.jpg?resize=768%2C428&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-KNN-India.jpg?resize=1536%2C857&amp;ssl=1 1536w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-KNN-India.jpg?w=1563&amp;ssl=1 1563w\" sizes=\"auto, (max-width: 388px) 100vw, 388px\" \/><figcaption id=\"caption-attachment-345363\" class=\"wp-caption-text\">Source &#8211; KNN India<\/figcaption><\/figure>\n<ul>\n<li>IIP is a <strong>monthly volume index<\/strong> that measures <strong>short-term changes in industrial output<\/strong>.<\/li>\n<li><strong>Formula used:<\/strong> The index is calculated as a <strong>simple weighted arithmetic mean<\/strong> using <strong>Laspeyres&#8217; formula<\/strong>.<\/li>\n<li><strong>Sectors covered:<\/strong> It tracks <strong>production in key industrial sectors<\/strong> and shows whether activity is <strong>expanding or contracting over a period<\/strong>.\n<ul>\n<li>IIP covers three broad sectors: <strong>Manufacturing (77.6% weight), Mining (14.4%), and Electricity (8%).\u00a0<\/strong><\/li>\n<li>The <strong>eight core industries<\/strong> together account for about <strong>40.27% of the weight of items<\/strong> included in the IIP.\n<ul>\n<li>These are refinery products, electricity, steel, coal, crude oil, natural gas, cement, and fertilizers, listed in <strong>descending order of their share.\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<figure id=\"attachment_345360\" aria-describedby=\"caption-attachment-345360\" style=\"width: 545px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-345360\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-MoSPI-1.jpg?resize=545%2C180&#038;ssl=1\" alt=\"\" width=\"545\" height=\"180\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-MoSPI-1.jpg?resize=300%2C99&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-MoSPI-1.jpg?resize=1024%2C339&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-MoSPI-1.jpg?resize=768%2C254&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-MoSPI-1.jpg?w=1432&amp;ssl=1 1432w\" sizes=\"auto, (max-width: 545px) 100vw, 545px\" \/><figcaption id=\"caption-attachment-345360\" class=\"wp-caption-text\">Source &#8211; MoSPI<\/figcaption><\/figure>\n<ul>\n<li><strong>Published by: <\/strong>It is published by the Central Statistics Office (<strong>CSO<\/strong>), Ministry of Statistics and Programme Implementation (<strong>MoSPI<\/strong>).\n<ul>\n<li>It is compiled and published <strong>every month<\/strong>, <strong>six weeks after<\/strong> the reference month ends.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Base year:<\/strong> The <strong>current base year is 2011\u201312<\/strong>, adopted to reflect the modern industrial structure.\n<ul>\n<li>The base has been <strong>periodically revised<\/strong> from earlier years such as <strong>1937, 1946, 1951, and 1956<\/strong>, and so on, to keep the index relevant.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Significance<\/strong>\n<ul>\n<li>Key <strong>high-frequency indicator<\/strong> of industrial momentum.<\/li>\n<li>Inputs for <strong>GDP nowcasting<\/strong>, <strong>monetary\/fiscal policy<\/strong>, capacity and investment planning.<\/li>\n<li>Used to gauge <strong>business cycles<\/strong> and sectoral performance.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Limitations (in the requested style):<\/strong>\n<ul>\n<li>Narrow scope\u2014excludes <strong>services, agriculture, and much of the unorganized sector<\/strong><\/li>\n<li><strong>Data-quality issues<\/strong> from reporting gaps and potential inaccuracies<\/li>\n<li><strong>Reliance on monthly data<\/strong> that can obscure long-term trends<\/li>\n<li><strong>Outdated base year\/weights<\/strong> over time<\/li>\n<li><strong>Quality vs quantity<\/strong> measurement problems for <strong>high-value, low-volume<\/strong> products<\/li>\n<li><strong>Time lags and revisions<\/strong><\/li>\n<li><strong>Slow basket updates<\/strong>\u2014with reforms underway to include <strong>newer products like solar panels<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: Industrial growth touched a four-month high of 3.5% in July 2025, as per the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation. About Index of Industrial Production (IIP) IIP is a monthly volume index that measures short-term changes in industrial output. Formula used: The index is calculated as&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/index-of-industrial-production-iip\/\">Continue reading <span class=\"screen-reader-text\">Index of Industrial Production (IIP)<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1305,12039],"tags":[11872],"class_list":["post-345359","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-index-reports-bodies","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/345359","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\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=345359"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/345359\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=345359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=345359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=345359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}