About: Index of Industrial Production (IIP)
Index of Industrial Production (IIP) shows the performance of different industrial sectors of the Indian economy.
The IIP is estimated and published on a monthly basis by the Central Statistical Organisation (CSO) .
As an all India index, it gives general level of industrial activity in the economy.
Importance of Index of Industrial Production
The IIP is used by public agencies including the Government agencies/ departments including that in the Ministry of Finance, the Reserve Bank of India etc. for policy purposes.
The all-India IIP data is used for estimation of Gross Value Added (GVA) of Manufacturing sector on quarterly basis.
Similarly, the data is also used extensively by analysts, financial intermediaries and private companies for various purposes.
About: Core Industries
The core sector is an aggregate of 8 core sectors that are fundamental to the Indian economy.
These 8 sectors constituting the core sector are important because they account for nearly 40.27% of the overall IIP and hence have long term repercussions for corporate profit growth as well as for the overall GDP growth.
These are Electricity, Steel, Refinery products, Crude oil, Coal, Cement, Natural gas and Fertilisers.
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