Context: As per official estimates for the Index of Industrial Production (IIP), India’s industrial recovery slowed sharply in December, with output growing just 0.4% year-on-year, and manufacturing activity contracting 0.1%.
About IIP
IIP is a composite indicator measuring changes in the volume of production of a basket of industrial products over a period of time, with respect to a chosen base period.
The base year used for IIP calculations is 2011-12.
It is compiled and published on a monthly basis by the Central Statistical Office with a time lag of six weeks from the reference month.
Coal, Crude Oil, Natural Gas, Refinery Product, Steel, Cement and Electricity are known as Core Industries.
The eight Core Industries in decreasing order of their weightage: Refinery Products > Electricity > Steel > Coal > Crude Oil > Natural Gas > Cement > Fertilizers.
The eight Core Industries comprise nearly 40.27 % of the weight of items included in the Index of Industrial Production (IIP).
