Prelims perspective: What needs to be learned

• What is Index of Industrial Production (IIP)
• Components of IIP
• Uses of IIP

Mains Perspective: Notes need to be prepared

• Calculation of GDP (GS III- Economy)

What needs to be Known:

• Index of Industrial Production (IIP):
  • It is a measure of short-term changes in the volume of industrial output in India, covering mining, manufacturing, and electricity sectors.
  • Released by National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation on a monthly basis.
  • Base Year: 2011-12
• Components of IIP Calculation:
  • Weightage for the sectors are in the order of manufacturing, electricity and mining sectors.
• Uses of IIP:
  • Policymakers use IIP for GDP estimates, inflation analysis, and formulating industrial policy.

Source: The Hindu