India Updates Index of Industrial Production with New Sectors and Products
Rare earths to waste management: What changes in new IIP 2022-23 series
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India's Ministry of Statistics and Programme Implementation is set to release a new Index of Industrial Production (IIP) series for 2022-23, replacing the 2011-12 series. The updated index reflects significant changes in the economy, including the addition of sectors like waste management and new products such as CCTVs and vaccines, enhancing the understanding of industrial output.
- 01The new IIP series will replace the 2011-12 base year with 2022-23 to better reflect current economic conditions.
- 02Coverage has expanded to include sectors such as gas supply, water supply, sewerage, and waste management.
- 03The total number of item groups in the IIP basket has increased from 407 to 463, with 120 new item groups added.
- 04Products like kerosene and fluorescent tubes have been removed to align with modern industrial trends.
- 05The IIP will continue to use a hybrid method for measuring industrial output, combining quantity and value-based measures.
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The Indian government is preparing to launch a new series of the Index of Industrial Production (IIP) with 2022-23 as the base year, replacing the previous 2011-12 series. This updated IIP, set for release on June 1, reflects significant changes in the economy, including the emergence of new industries and changes in production patterns. The revised series will now encompass additional sectors such as gas supply, water supply, sewerage, and waste management, providing a more comprehensive view of industrial activity. Notably, the number of item groups has grown from 407 to 463, with 120 new groups added, featuring products like CCTVs and vaccines. Conversely, 64 outdated items, including kerosene and fluorescent tubes, have been removed. The IIP will continue to be released monthly with a 28-day lag and will utilize a hybrid measurement approach, combining quantity and value-based metrics. This overhaul aims to enhance the understanding of industrial output and better inform policymakers and businesses about economic trends.
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The updated IIP series will provide more accurate insights into industrial output, influencing economic policy and business strategies.
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