"India's Industrial Output Growth Accelerates Ahead of Festive Season"
IIP
monthly indicator of industrial output growth, compiled by the NSO under MoSPI.
ICI
Index of Core Industries, tracking eight infrastructure-linked sectors within IIP.
The Index of Industrial Production (IIP) is India's principal monthly measure of industrial output, compiled by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). It uses 2011-12 as its base year and tracks output across three broad sectors: manufacturing, which carries the largest weight of roughly 77.6%, along with mining and electricity. The index is released about six weeks after the reference month, making it one of the earliest available signals of the economy's momentum in any given quarter.
Running alongside IIP is a narrower gauge, the Index of Core Industries (ICI), which tracks eight infrastructure-linked sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. These Eight Core Industries together carry a combined weight of about 37.90% within the IIP itself, which is why ICI data is often read as an early, partial preview of the fuller IIP release. Because both indices draw on overlapping sectors, comparing their growth rates for the same sector, such as electricity or cement, offers a built-in cross-check on data quality.
Since the pandemic, India's industrial recovery has leaned heavily on government capital expenditure and export demand, with private investment and rural consumption remaining comparatively weak. A recently revised IIP series, whose growth data is available from April 2024 onward, uses an updated base year, wider data sources and improved methodology. This has also brought IIP readings into closer alignment with ICI trends than the older series typically managed, a change that matters because persistent divergence between the two indices used to complicate the reading of India's industrial health.
Beyond the sectoral split into manufacturing, mining and electricity, IIP data is also organised by use-based category: primary goods, capital goods, intermediate goods, infrastructure or construction goods, consumer durables, and consumer non-durables. This classification is analytically more useful than the sectoral one because it reveals who is actually driving industrial demand. Growth in capital goods points to investment activity, often government-led in recent years, while construction and infrastructure goods track the pace of building activity, including housing and public works.
Consumer durables and consumer non-durables serve as the clearest proxies for household demand. …
In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among the Eight Core Industries?
1.Cement
2.Fertilizers
3.Natural gas
4.Refinery products
5.Textiles
Select the correct answer using the codes given below:
Which of the following activities constitute real sector in the economy?
1.Farmers harvesting their crops
2.Textile mills converting raw cotton into fabrics
3.A commercial bank lending money to a trading company
4.A corporate body issuing Rupee Denominated Bonds overseas
Select the correct answer using the code given below:
Consider the following industries: 1. Cement 2. Fertilizers 3. Textiles 4. Natural Gas 5. Refinery Products. How many of the above are among the Eight Core Industries used to compute India's Index of Core Industries (ICI)?
With reference to the Index of Industrial Production (IIP), consider the following statements: 1. It is compiled and released monthly by the National Statistical Office under the Ministry of Statistics and Programme Implementation. 2. The current series of the IIP uses 2004-05 as its base year. 3. Manufacturing carries the highest weight among the three broad sectors covered by the index. Which of the statements given above is/are correct?
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