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Components

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Components

  1. 1. INDEX FOR INDUSTRIAL PRODUCTION : Index which measures volume changes. Provides measurement free of Price changes. Composite indicator that measures the short-term changes in theproduction of a basket of industrial goods. Government of India’s Central Statistics Office (CSO) compiles and publishesthe IIP The all-India IIP was first released by the Office of Economic Adviser underthe Ministry of Commerce and Industry with 1937 as the base year.
  2. 2. COMPONENTS: IIP MANUFACTURING MINING ELECTRICITY INDUSTRY USER BASED GOODS GOODS CAPITAL INTERMEDIATE CONSUMER BASIC GOODS GOODS GOODS GOODS DURABLE NON-DURABLE
  3. 3. BASE YEARS• 1937• 1946• 1951• 1956• 1960• 1970• 1980-81• 1993-94• 2004-05 (current)
  4. 4. CURRENT BASE YEAR – 2004-2005• Comprises of 682 items.• Broader (includes technologically advanced goods.• Eg: cell phones and i-pods.• Previous BY 93-94 was not usable.•Exclusion of Unregistered Manufacturing Firms.
  5. 5. Importance• Key indicator of GDP• As a Job Seeker• As a Stock Investor• As a Shopper• As a Borrower• As a Producer/Exporter
  6. 6. TRENDS
  7. 7. Year 1994-1995
  8. 8. YEAR 1995-2000
  9. 9. YEAR 2000-2005
  10. 10. YEAR 2005-2010
  11. 11. YEAR 2010-2012
  12. 12. YEAR 2012
  13. 13. REASONS FOR DECREASING IIP GROWTH RATE :• TRADING PARTNERS• EXPORTS & IMPORTS• UNEVEN CREDIT FLOW• FALL IN REAL GDP• MONETARY POLICY OF GOVERNMENT• SLUMP IN STOCK MARKET• INVESTMENT DEMAND
  14. 14. INFLATIONUNEMPLOYMENT IIP INTERST RATE GDP GROWTH
  15. 15. PROBABLE FORECAST:• CONTRACTION OF DEMAND – DOMESTIC & GLOBAL• IIP TO GO BELOW 6%

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