Revision of Base Year of All India Index of Industrial Production

The Committee of Secretaries (COS) in its meeting held on 10th May, 2011 approved the release of the new series of Index of Industrial Production (IIP) with 2004-05 as its base and directed that the new series of IIP may be released for the month of April, 2011onwards. Accordingly IIP new series is released today i.e 10th June, 2011, which is the Quick Estimate (QE) of IIP for the month of April, 2011. The time series indices for the period of April, 2005 to March, 2011 are also released along with the QE of April, 2011 index. Though the Q.E. of the IIP pertaining to the old series of IIP (Base: 1993-94=100) is also made available through this Ministry’s website for comparison and academic purposes, the same will be discontinued from the month of September, 2011 onwards. In other words, the Q.E. of IIP pertaining to 1993-94 series will be provided only upto the month of August, 2011, which will be the Q.E. of IIP for the month of June, 2011.

The revision of base year of IIP was undertaken based on the recommendations of the Standing Committee on Industrial Statistics (SCIS), constituted by the Ministry of Statistics & PI. The SCIS includes members from concerned Ministries, and it is presently chaired by Dr. Biswanath Goldar, Professor, Institute of Economic Growth. The National Statistical Commission (NSC) also recommended revision of base year of IIP to 2004-05.

Some of the salient features of new series of IIP are as follows:

A representative item basket comprising 682 individual items has been selected for the new series of IIP. Further, and a new weighting diagram which better reflects the present structure and composition of the industry due to changes in the technology, economic reforms and production behaviour over time, is derived for the new series.

The new series of IIP covers the sectors of mining, manufacturing and electricity in its scope as in the current series. For the compilation of sectoral weights for these three main sectors, GDP at factor cost available from the National Accounts Statistics (2010) is used.