Context:

In June 2023, seven out of the eight core sectors, which make up the Index of Industrial Production, experienced an increase in their performance.

About Index of Industrial Production (IIP):

• IIP is an index which shows the growth rates in different industry groups of the economy in a stipulated period of time. 
• Publication: It is  published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
• Base Year: 2011-12
• It is a composite indicator that measures the growth rate of industry groups classified under:
  • Broad sectors, namely, Mining, Manufacturing and Electricity
  • Use-based sectors, namely Basic Goods, Capital Goods and Intermediate Goods.

Eight Core Sectors:

• The eight core sector industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP) which includes (in decreasing order of weightage) : 
  • Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.

Significance of IIP:

• It is used by government agencies, the Reserve Bank of India, etc, for policy-making decisions.
• It helps in the calculation of the quarterly and advance GDP (Gross Domestic Product) estimates.

News Source : The Hindu