Index of Industrial Production (IIP)

Index of Industrial Production

Context:

The pace of growth of 8 key infrastructure sectors slackened to 4.3% in May because of a decline in the production of crude oil, natural gas and electricity.

About Index of Industrial Production (IIP):

  • It measures the industrial production for the period under review, usually a month, as against the reference period.
  • Base year: 2011-2012
  • Released by: National Statistical Office (NSO) under MoSPI
  • IIP Index Components:
    • Broad sectors: Mining (14.4%), Manufacturing (77.6%) and Electricity (8%)
    • Use-based sectors: Basic Goods, Capital Goods and Intermediate Goods etc.
  • 8 Core Industries comprise 40.27% of the weight of items included in the IIP.
  • Decreasing order of weightage: Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers

In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight? 

[UPSC Civil Services Exam – Prelims 2015]

(a) Coal production

(b) Electricity generation

(c) Fertilizer production

(d) Steel production

Previously, Electricity was having the highest weightage. Currently, Refinery Products has the highest weightage.

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