India's industrial production rose 11.9% in August, according to official data.
About IIP:
As the name suggests, the Index of Industrial Production (IIP) maps the change in the volume of production in Indian industries.
More formally, it chooses a basket of industrial products — ranging from the manufacturing sector to mining to energy, creates an index by giving different weight to each sector and then tracks the production every month.
Finally, the index value is compared to the value it had in the same month last year to figure out the economy’s industrial health.
There are two ways in which IIP data can be viewed. The first is to look at sectoral performance. In this the whole industrial economy is divided into three sectors; the first is manufacturing with a weight of 77.6 per cent in the index, the second is mining with a weight of 14.4 per cent and third is electricity with a weight of 8 per cent.
The Index of Industrial Production (IIP) is an index which shows the growth rates in different industry groups of the economy in a stipulated period of time.
Calculation of IIP:
The IIP index is computed and published by the Central Statistical Organisation (CSO) on a monthly basis.
It is a composite indicator that measures the growth rate of industry groups classified under,
Broad sectors, namely, Mining, Manufacturing and Electricity
Use-based sectors, namely Basic Goods, Capital Goods and Intermediate Goods.
