The index of Industrial Production (IIP) conveys the status of production in the industrial sector of an economy in a given period of time, in comparison with a fixed reference point in the past.
IIP is a composite indicator that measures the growth rate of industry groups classified under,
1. Broad sectors, namely, Mining, Manufacturing and Electricity
2. Use-based sectors, namely Basic Goods, Capital Goods and Intermediate Goods.
The IIP numbers, in India use 2004-05 as the base year for comparison. The current Index of Industrial Production (IIP) with base 2004-05 has a broader coverage of 682 items comprising 61 from Mining & Quarrying, 620 from Manufacturing and 1 from Electricity Sector having the weightage of 14.16%, 75.53% and 10.32% respectively in the all-India IIP.
The Eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP). They are Coal, Crude Oil, Natural Gas, Petroleum Refinery Products,Fertilizers,Steel, Cement & Electricity.
It is compiled and published monthly by the Central Statistical Organisation (CSO) six weeks after the reference month ends.