Index of Industrial Production (IIP) Section
Index of Industrial Production (IIP) is one of the Prime indicators of the economic development for the measurement of trend in the behavior of the Industrial Production over a period of time with reference to a chosen base year.
It indicates the relative change of physical production in the field of industries during a specified year as compared to previous year.
Functions of IIP Section
- 1. To prepare monthly as well as Annual Index of Industrial Production.
- 2. To compile district wise as well as group wise main characteristics of Annual Survey of Industries (ASI) returns.
- 3. Presently, the IIP is prepared for Manufacturing & Electricity sectors with 2004-05 as base year.
- 4. Report on Index of Industrial Production of Haryana is prepared annually.
Data Source and Methodology
- 1. The annual IIP and summary results are prepared on the basis of Annual Survey of Industries (ASI) returns received from NSSO (FOD), Govt. of India.
- 2. For preparation of Monthly IIP, the department collects monthly production data directly from selected industrial units in the State through its District Statistical Officers.
- 3. Methodology followed : as suggested by CSO, New Delhi
Usage and Importance of Index of Industrial Production
- 1. State level
- (a) Used by the Government and Planners at different level for different Policy decisions
- (b) Used by the department for preparation of state income estimates of manufacturing sector.
- 2. Central Government
- (a) Used by the Government and Planners at different level for different Policy decisions and other purposes in context to Haryana.
Revision of Base year of IIP
- 1. To capture the changes in the industrial sector, the State series of IIP is revised from time to time by dropping obsolete items, including the new items in the basket and also shifting the base year to a more recent one.
- 2. The State is now revising the current series of State IIP by shifting its base year from 1999-2000 to 2004-05.
- 3. Steps involved for revision of base year are
- (a) Selection of items basket
- (b) Weighting Diagram
- (c) Selection of industrial units for data collection.
- 4. Statistical methods are applied to arrive at IIP after finalisation of items basket, weighting diagram and collecting production data from the selected industrial units.
Summary Results of ASI
This section also compiles district wise and group wise various characteristics of ASI returns i.e output, input, depreciation, net value added and number of workers on annual basis.