Ecostat

Index of Industrial Production - Kerala 
 	
                  From 2005-06 to 2014-15 
Base Year: 2004-05 
 	
Department of Economics and Statistics 
Government of Kerala 	
 
 
 
 
 
 
 
 
 	
 	
 

 
Introduction 	
The Index of Industrial Production (IIP) is the most well‐known and well used 
indicator to compare the industrial performance of the economy.  IIP measures volume 
changes in production of an economy and therefore provides a measurement that is free 
of influences of price changes.  To measure the growth in the	
 general level of industrial 
activity in the State, Department of Economics and Statistics (DES) regularly collects 
production data from selected industrial units. The IIP of State measures the industrial 
performance in the State with reference to a comparable base year.  The base year of the 
current series of Kerala IIP 	
is 2004‐05.  It covers Manufacturing, Mining and Quarrying, 
and Electricity sectors. The latest series with 2004‐05 as base year contains a total of 336 
items of manufacturing sector together with 7 items from mining & Quarrying and one 
for electricity. The Department of Economics and Statistics has been compiling	
 the IIP 
data for Kerala, in accordance with the guidelines of Central Statistical Office, 
Government of India.   
 	
Historical Background in India: 	
Comparison of economic performance over time is a key factor in economic 
analysis and a fundamental requirement for policy‐making. Short‐term indicators play an 
important role in this context by providing such comparison indicators. Among these 
short‐term indicators, the Index of Industrial Production (IIP) has historically been one of	
 
the most well known and well‐used indicators.  In India, the Office of the Economic 
Advisor, Ministry of Commerce and Industry made the first attempt of compilation and 
release of Index of Industrial Production, with base year 1937.  With the establishment of 
the Central Statistical Office (CSO) in 1951, the 	
responsibility for compilation and 
publication of the Index of Industrial Production (IIP) was vested with CSO.  Since then 
the all India IIP is being released by the CSO as monthly series. 	
State Participation in Construction of Index of Industrial Production 	
The all‐India IIP compiled by CSO measures only the macro‐level industrial changes.  As 
the structure of industry and its development is unique, the indices compiled at all‐India level do 
not fulfil the requirements of individual states.  Hence the need for indices at the state level was 
keenly felt.	
  In September 1975, a unit of Index of Industrial Production started functioning in 
DES with the collection of production details for the quarter ending July 1975. Since then the DES 
has been compiling the Kerala state level IIP, in accordance with the guidelines of CSO. 

IIP                             
Sector Wise	
Manufacturing           
68%	
Su�E Divided 
into 22 
industries	
Mining �	 
�4uarr�\ing    3�	Electricit�\                    
29�  	
Break up of components comprising IIP sector wise : 
 
 
 
 
 
 
 
 
 
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, the department collects monthly 
production data directly from the selected manufacturing units through District Statistical 
Offices.   
 	
Weighting Diagram: 	
Total weight of IIP, which is taken as 1000, was apportioned first to three industrial 
sectors, ie, Manufacturing, Mining& Quarrying and Electricity.  The sectoral weight of 
manufacturing sector was then allocated to its 2, 3 & 4 digit industry groups in proportion to 
their GVA figures.  Finally the weight allocation at	
 item level has been done in proportion to 
item‐wise GVO. In case of mining & quarrying sector the total weight of the sector was 
apportioned to the items included in the item basket in proportion to their value of out put 
furnished by IBM. 
 

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Index of Industrial production from 2005‐06 to 2014‐15 
(Base year 2004‐05) 	
The IIP for Kerala from 2004‐05 to 2014‐15 is given in the following tables. The detailed 
table for Manufacturing sector, Mining and Quarrying sector Electricity sector, for respective 
years is also annexed. 	
 
Table 1.  Sectoral Index 
 
Year Manufacturing Mining & 
Quarrying ElectricityGeneral Index 
2005‐06 67.3 122.6 117.1 83.6 
2006‐07 86.7 118.5 122.1 98.0 
2007‐08 103.0 129.6 141.8 115.1 
2008‐09 121.3 132.4 116.2 120.1 
2009‐10 94.0 146.1 124.2 104.4 
2010‐11 103.3 136.6 118.8 108.9 
2011‐12 122.6 138.5 139.3 127.9 
2012‐13 107.5 
 104.2 109.2
 107.9 
2013‐14 112.4 139.3 125.2 116.9 
2014‐15 128.4 139.5 137.7 131.5 
 
 

 
Table 2. 	Detailed index (Manufacturing Sector) 	
  	                                 Index 	
NIC 
Code Description  2005-
062006-
07	
 	
2007-
08	
 	
2008-
09	
 	
2009-
10	
 	
15  Food Products & Beverages 	35.238.650.2 71.3 65.2	
16  Tobacco Products 	17.014.513.8 115.9 7.8	
17  Textiles 	68.673.961.5 59.5 48.3	
18  Wearing Apparel, Dressing 	*** * *	
19  Tanning & Dressing of Leather 
and Products 	30.337.634.9 43.9 37.1	
20  Wood & Products 	132.5137.4130.8 36.0 76.4	
21  Paper & Paper Products 	97.588.190.2 73.4 75.5	
22  Publishing, Printing and 
Reproduction of Media 	24.2170.2215.1 13.0 65.4	
23  Coke, Refined Petroleum 	69.788.591.0 65.4 97.8	
24  Chemicals and Chemical 
Fertilizers 	76.084.496.5 305.2 104.7	
25  Rubber and Plastic Products	50.975.882.7 307.2 101.2	
26  Other non-metallic minerals 	47.473.586.6 64.8 91.2	
27  Basic Metals 	55.673.9141.7 169.3 78.5	
28  Fabricated metal products 	72.675.3104.1 126.7 142.9	
29  Machinery and equipment 	81.669.273.6 89.8 56.7	
30  Office, accounting and computing 
machinery 	*** 65.4 250.5	
31  Electrical machinery and parts	80.5147.1293.6 124.9 189.0	
32  Radio, television 	193.6239.9332.4 71.0 230.6	
33  Medical, Precision and optical 	220.384.688.6 110.6 107.2	
34  Motor vehicles, trailers 	201.7168.0463.9 57.7 110.6	
35  Other transport equipment 	87.573.478.0 90.5 64.8	
36  Furniture, Manufacturing  n.e.c 	20.936.5141.6 83.3 170.2	
Sector           Manufacturing 	67.486.7103.0 121.3 93.9	
NB.* Indices could not compile due to the non availability of data. 

 
Table 2(contd). 	Detailed index (Manufacturing Sector) 	
  	                                 Index 	
NIC 
Code Description  2010-
112011-
12	
 	
2012-
13	
 	
2013-
14	
 	
2014-
15	
 	
15  Food Products & Beverages 	56.2246.9134.3 143.5 156.1	
16  Tobacco Products 	6.86.96.7 6.0 5.8	
17  Textiles 	63.453.665.6 67.7 73.8	
18  Wearing Apparel, Dressing 	*214.8175.6 212.1 259.2	
19  Tanning & Dressing of Leather 
and Products 	108.4172.562.2 68.4 211.4	
20  Wood & Products 	78.075.9103.5 99.9 84.3	
21  Paper & Paper Products 	81.781.475.9 74.7 67.2	
22  Publishing, Printing and 
Reproduction of Media 	50.450.958.2 74.3 236.4	
23  Coke, Refined Petroleum 	101.5107.7113.1 118.0 120.0	
24  Chemicals and Chemical 
Fertilizers 	91.495.3116.4 117.6 118.8	
25  Rubber and Plastic Products	173.673.768.8 73.1 76.2	
26  Other non-metallic minerals 	91.985.461.3 64.5 103.3	
27  Basic Metals 	81.267.173.5 67.7 70.5	
28  Fabricated metal products 	135.3113.4105.2 82.2 80.5	
29  Machinery and equipment 	74.1180.3131.4 143.3 102.5	
30  Office, accounting and computing 
machinery 	246.872.5115.8 86.1 44.7	
31  Electrical machinery and parts	196.2277.2164.7 146.1 93.7	
32  Radio, television 	304.7180.5226.1 233.9 280.0	
33  Medical, Precision and optical 	108.5167.7138.5 172.6 232.1	
34  Motor vehicles, trailers 	85.296.3109.4 75.6 58.6	
35  Other transport equipment 	137.222.822.8 16.2 125.4	
36  Furniture, Manufacturing  n.e.c 	123.783.272.2 96.6 121.9	
Sector           Manufacturing 	103.3122.6107.6 112.4 128.4	
NB.* Indices could not compile due to the non availability of data.

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