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India's industrial output, measured by the Index of Industrial Production (IIP), registered a growth of 5.2% in February 2024.
The manufacturing, mining, and electricity sectors were the primary contributors to this overall industrial expansion.
Despite the growth, the consumer durables segment experienced a contraction of 1.2%, indicating subdued domestic demand.
The data, released by the National Statistical Office (NSO) under MoSPI, reflects a fragile and uneven rebound in industrial activity.
The Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production of industrial products in India. It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The IIP serves as a key economic indicator, reflecting the health and performance of the industrial sector, which includes manufacturing, mining, and electricity. The current base year for IIP calculation is 2011-12.
Simple Analogy: Think of IIP as a monthly report card for India's factories, mines, and power plants, showing how much they are producing compared to a baseline year. A higher percentage indicates more production, while a lower or negative percentage suggests a slowdown.
Responsible for the compilation and release of IIP data, along with other macroeconomic statistics.
The nodal ministry for all statistical activities in the country, overseeing the NSO.
IIP provides a crucial short-term indicator of industrial activity, which is a significant component of India's overall GDP. Trends in IIP often foreshadow broader economic growth or slowdowns.
The Reserve Bank of India (RBI) closely monitors IIP data to assess the health of the economy and make informed decisions regarding interest rates and other monetary policy tools. A slowdown in industrial output might prompt rate cuts to stimulate demand.
Industrial output trends can influence supply-side factors affecting inflation. For instance, robust industrial production can help meet demand and potentially ease price pressures, while a decline might indicate supply constraints.
GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Government Budgeting. Industrial Policy.
General Awareness: Indian Economy, Economic Indicators.
Economic & Financial Awareness: Macroeconomic Indicators, Government Bodies, Monetary Policy.
General Awareness: Indian Economy, Basic Economic Concepts.
Consider the following statements: Statement-I: India accounts for 3.2% of global export of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?
Answer: Statement-I is incorrect but Statement-II is correct
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:
Answer: 1 and 2 only
Among the following, which one is the largest exporter of rice in the world in the last five years?
Answer: India
High (Economic indicators are regularly featured in competitive exams).
A composite indicator measuring the volume of production in industrial sectors.
The body responsible for compiling and releasing IIP data.
A reference year against which current production levels are compared for calculating IIP (currently 2011-12).
Categorization of industrial products based on their end-use (e.g., primary goods, capital goods, consumer durables).