IIP Data: Good news on the economy front, industrial production up 2.4% in July

The industrial production (IIP) of the country has registered a growth of 2.4 percent during July. A year ago, during July 2021, there was an increase of 11.5 percent in IIP. This information has been received from the data of Index of Industrial Production (IIP) released by the National Statistical Office (NSO) on Monday. According to the data, the production of the manufacturing sector has increased by 3.2 percent in July 2022. In addition, mining output declined by 3.3 per cent during July. Whereas, electricity generation has increased by 2.3 percent.

Significantly, in April, 2020, due to the Kovid-19 epidemic, industrial production was severely affected and it fell by 57.3 percent.

What is IIP?

Let us tell you that the Index of Industrial Production (IIP) has a special importance in the economy of any country. This shows the speed at which industrial growth is taking place in the economy of that country. Data is collected from 15 agencies for estimating IIP. These include Department of Industrial Policy and Promotion, Indian Bureau of Mines, Central Statistical Organization and Central Electricity Authority.

According to the latest standards issued by the Ministry of Statistics, the main condition for a product to be included in it is that the total value of its output at the stage of production of the commodity should be at least Rs 80 crore.

Apart from this, there is also a condition that monthly data of production of the commodity should be available continuously. The commodities included in the index are divided into three groups – mining, manufacturing and electricity. These are then further divided into sub-categories like basic goods, capital goods, intermediate goods, consumer durables and consumer non-durables.

Apart from this, let us tell you that due to the cost of food items, the retail inflation rate has increased to seven percent in the month of August. This information has been received from government data released on Monday. It was 6.71 per cent in July a month ago. Inflation based on the CPI remained above the upper limit of the reserve’s satisfactory level for the eighth consecutive month. The government has given the responsibility of keeping the retail inflation between two percent to six percent to the RBI.

(with language input)