Index of Industrial Production
IIP measures the changes in the industrial production and the general level of industrial performance in the economy. It is used as a short term macro-economic indicator of industrial growth. IIP is considered to be one of the lead indicators for short term economic analysis because of its strong relationship with economic fluctuations in the economy. It is also used as major data source for the compilation of annual and quarterly estimation and forecasts of GDP. Index of industrial production is compiled for three major sectors.
- Mining and Quarrying
- Registered Manufacturing
- Electricity
METHODOLOGY
Selection of Item Basket
In case of ‘manufacturing’ sector, the base used for selection of items in the item basket for IIP is the item-wise production data of ASI 2011-12 provided by CSO. The item basket for manufacturing sector was identified with base year 2011-12. A total of 23 NIC 2 digit level item groups were selected for manufacturing sector. Since the number of items in ‘mining & quarrying’ sector in Kerala is very few, all the mining items in the item basket were covered. The Electricity sector consists of single item and total electricity generated in Kerala is taken.
Source of Data
The monthly production data of ‘mining & quarrying’ and ‘electricity’ for compiling State level IIP are collected from Indian Bureau of Mines (IBM), Nagpur and Central Electricity Authority respectively. In case of ‘manufacturing’ sector, after finalization of item basket (containing selected item groups and items within the group), item wise list of factories along with their production in the base year has been prepared from out of the list of factories from ASI survey 2011-12. A total of 190 registered manufacturing units were selected for data collection and the department collects monthly production data of 134 manufacturing items directly from these units through District Statistical Offices.
Periodicity
The index is being calculated monthly and is published quarterly.