Industrial Sector plays a vital role in the Economic development of the Country/State. The development in the Industrial sector is measured by means of a statistical tool called “Index of Industrial Production (IIP)”. This IIP shows the Macro Economic condition of the Industrial sector. It portray the magnitude of the industrial growth achieved over the previous month/quarter there by enabling the policy planner, economist, administrator and the research scholar to analyse the industrial scenario in the short-run as well as in the long-run. It also specifically shows the contribution of the different industries toward industrial growth in the State/Country.
At regular interval, The National Statistics Office (NSO) has been shifting the base year. Presently, the base year for IIP is 2011-12. It is with reference to this base year that the growth rate is determined. At the central level NSO has been releasing the all India IIP on monthly basis since 1964. In the state of Nagaland, DES compiled and release state IIP on monthly basis.
The scope and coverage of IIP is confined to registered Manufacturing, Electricity and Mining & Quarrying. Within the Manufacturing sector, Only the factories that were registered under section 2(m)(i) and 2(m)(ii) of the factories act 1948 has been taken into consideration (as per ASI frame).
The methodology for the compilation of IIP is essentially two fold. The first stage is the selection of item to be included in the item basket which could monitor and reflect the performance of the industrial sector over time.
Second stage is the assigning of weight to the different sector and items.
The actual estimation is done with the Lespeyer’s formula.
In order to get proper and realistic data, the DES has relied on an online mode of data collection where the factory simply has to login and fill up their monthly production data from February 2020.
Help the Government in the formulation of economic policies pertaining to the industrial sector of the economy.
The Index reflects the trends in the growth and performance of the industrial sector.
Specifically shows the contribution of the different industries toward industrial growth.
Help in analysing the industrial scenario of the economy.