Context: Industrial Output Growth
India’s industrial output growth, measured by the Index of Industrial Production (IIP), slowed to 4.1% in March (5-month low), dragged by construction and consumer sectors, with the slowdown trend visible even before the West Asia crisis.
IIP – Basics
- Base Year (current): 2011–12
- Proposed new base year: 2022–23 (revision under process)
- Compiled by: Ministry of Statistics and Programme Implementation (MoSPI)
- Objective:
→ Measure short-term industrial output changes
→ Act as a leading indicator of economic activity
Sectoral Weights
- Manufacturing ~77.6%
- Mining ~14.4%
- Electricity ~7.9%
8 Core Industries (≈40.27% of IIP)
- Compiled by: Office of the Economic Adviser, Ministry of Commerce & Industry
Weights
- Refinery products – 28.04%
- Electricity – 19.85%
- Steel – 17.92%
- Coal – 10.33%
- Crude oil – 8.98%
- Natural gas – 6.88%
- Cement – 5.37%
- Fertilisers – 2.63%
