IIP Going Strong
The basket of goods includes coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement, and electricity as the main component
The Index of Industrial Production (IIP) is an economic indicator released by the Ministry of Statistics. that measures the short-term changes in the volume of production of a basket of industrial products during a given period. The base year to measure this is 2010-11. The basket of goods includes coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement, and electricity as the main component. These are known as the eight core industries.
As per the latest estimate, the combined Index of eight core Industries increased by 3.3 percent (provisional) as compared to the Index of August 2021. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). Details of yearly and monthly indices and growth rates are provided at Annex I & II respectively. The final growth rate of Index of Eight Core Industries for May 2022 is revised to 19.3 percent from its provisional level 18.1 percent
Coal production (weight: 10.33 percent) increased by 7.6 percent in August 2022 over August 2021. Crude oil production (weight: 8.98 percent) declined by 3.3 percent in August 2022 over August 2021. Natural gas production (weight: 6.88 percent) declined by 0.9 percent in August 2022 over August 2021. For petroleum refinery production (weight: 28.04 percent) increased by 7.0 percent in August 2022 over August 2021.
Fertilizer production (weight: 2.63 percent) increased by 11.9 percent in August 2022 over August, 2021. Its cumulative index increased by 11.4 percent from April to August 2022-23 over the corresponding period of the previous year. Steel production (weight: 17.92 percent) increased by 2.2 percent in August, 2022 over August, 2021.
Cement production (weight: 5.37 percent) increased by 1.8 percent in August, 2022 over August, 2021. Its cumulative index increased by 10.6 percent during April to August 2022-23 over the corresponding period of the previous year. Electricity generation (weight: 19.85 percent) increased by 0.9 percent in August, 2022 over August, 2021. Its cumulative index increased by 10.5 percent during April to August, 2022-23 over the corresponding period of the previous year.
