1. INDEX FOR INDUSTRIAL PRODUCTION :
 Index which measures volume changes.
 Provides measurement free of Price changes.
 Composite indicator that measures the short-term changes in the
production of a basket of industrial goods.
 Government of India’s Central Statistics Office (CSO) compiles and publishes
the IIP
 The all-India IIP was first released by the Office of Economic Adviser under
the Ministry of Commerce and Industry with 1937 as the base year.

2. COMPONENTS:
IIP
MANUFACTURING MINING ELECTRICITY
INDUSTRY USER BASED
GOODS GOODS
CAPITAL INTERMEDIATE CONSUMER
BASIC GOODS
GOODS GOODS GOODS
DURABLE NON-DURABLE

3. BASE YEARS
• 1937
• 1946
• 1951
• 1956
• 1960
• 1970
• 1980-81
• 1993-94
• 2004-05 (current)

4. CURRENT BASE YEAR – 2004-2005
• Comprises of 682 items.
• Broader (includes technologically advanced goods.
• Eg: cell phones and i-pods.
• Previous BY 93-94 was not usable.
•Exclusion of Unregistered Manufacturing Firms.

6. Importance
• Key indicator of GDP
• As a Job Seeker
• As a Stock Investor
• As a Shopper
• As a Borrower
• As a Producer/Exporter

7. TRENDS

8. Year 1994-1995

9. YEAR 1995-2000

10. YEAR 2000-2005

11. YEAR 2005-2010

12. YEAR 2010-2012

13. YEAR 2012

15. REASONS FOR DECREASING IIP GROWTH RATE :
• TRADING PARTNERS
• EXPORTS & IMPORTS
• UNEVEN CREDIT FLOW
• FALL IN REAL GDP
• MONETARY POLICY OF GOVERNMENT
• SLUMP IN STOCK MARKET
• INVESTMENT DEMAND

16. INFLATION
UNEMPLOYMENT
IIP INTERST RATE
GDP GROWTH

17. PROBABLE FORECAST:
• CONTRACTION OF DEMAND – DOMESTIC & GLOBAL
• IIP TO GO BELOW 6%