Index of Industrial Production (IIP) grows to 8.1 percent
Why in News?
- A data released by the Central Statistics Office (CSO) displayed the growth of factories output from 4.5 percent in September 2018 to 8.1 percent in October 2018.
- The output of the factories was measured in term of Index of Industrial Production (IIP).
- Favorable base effect and robust output in all key sectors like manufacturing, electricity, and mining attributed to this growth.
- Index of Industrial Production is used for the assessment of the economic activity in the country.
- While the manufacturing sector output grew 7.9 percent in October from 4.6 in September 2018, the electricity production grew to 10.8 percent in October from 8.6 percent in September 2018. The production in mining grew to 7 percent in October 2018 from 0.2 percent in September 2018.
- The production of the primary goods grew percent by 6.0, intermediate good by 1.8 percent and infrastructure/construction goods by 8.7 percents in comparison to the growth in October 2017.
- Apart from this, the consumer durables output also witnessed a growth of 17.6 percent from 5.2 percent in September 2018.
Index of Industrial Production (IIP):
- The Index of Industrial Production (IIP) details out the growth of various sectors in an economy such as mineral mining, electricity, and manufacturing.
- It is an indicator that quantifies changes in the production of a basket of industrial products during a given period with respect to that in a chosen base period.
- It is prepared and released by the Central Statistical Organisation (CSO) six weeks after the reference month ends.
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