Government to rework IIP; new series soon

16 Oct 2009

The government will rework the components of the index of industrial production (IIP) and soon come out with a new series of data.

The new IIP series will do away with obsolete items and add those products that have entered the markets in more recently, in order to give an accurate picture of industrial production in the country, sources at the department of industrial policy and promotion (DIPP) said.

The new IIP series will be based on 2004-05 figures for calculating industrial production against the current base of 1993-94.

The DIPP is working with the Central Statistical Organisation (CSO) on the shifting of the base year.

The number of items in the index will also go up from the present 543 with the revision of the base, the official said, adding data collection has more or less started.

The official said the new index would be a better indicator of the industrial production and help policy makers and market participants assess the production trend more accurately.