Context: 

India's Index of Industrial Production (IIP) recorded a growth of 5.2% in November 2024. 

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• The Quick Estimates of the Index of Industrial Production (IIP) are released on the 12th of every month (or the previous working day if the 12th is a holiday) with a six-week delay. 
• These estimates are based on data collected from source agencies, which in turn receive information from producing factories and establishments. 

Key Highlights of IIP for November 2024:

• The IIP growth rate for November 2024 is 5.2%, up from 3.5% (Quick Estimate) in October 2024.

Sector-wise Growth: The growth rates of the three sectors – 

• Mining: 1.9% growth; 
• Manufacturing: 5.8% growth; 
• Electricity: 4.4% growth. 

The Quick Estimates of IIP stands at 148.4 against 141.1 in November 2023. 

Sectoral indices:

• Mining: 133.8
• Manufacturing: 147.4
• Electricity: 184.1

Manufacturing Sector Performance: 18 out of 23 industry groups in the manufacturing sector showed positive growth.

• Basic Metals (7.6% growth): Growth was driven by galvanized steel products, pipes, tubes, and alloy steel flat products.
• Electrical Equipment (37.2% growth): Growth from electric heaters, small transformers, and optical fibre connectors.
• Non-metallic Mineral Products (12.0% growth): Growth from prefabricated concrete blocks, cement, and fibreglass.

Use-based Classification:

Indices for November 2024: 

• Primary Goods: 147.7 (2.7% growth)
• Capital Goods: 106.8 (9.0% growth)
• Intermediate Goods: 158.8 (5.0% growth)
• Infrastructure/Construction Goods: 180.6 (10.0% growth)
• Consumer Durables: 120.5 (13.1% growth)
• Consumer Non-durables: 158.1 (0.6% growth).

The main contributors to IIP growth are Infrastructure/Construction Goods, Consumer Durables, and Primary Goods.

About Index of Industrial Production (IIP)

• The IIP is a monthly index that measures the performance of India's industrial sectors. 
• The Central Statistical Organisation (CSO), under the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) is responsible for the compilation and publication of the Index of Industrial Production (IIP) in India since 1950. 
• The IIP is calculated using Laspeyre's formula, which is a simple weighted arithmetic mean of production relatives. 
• It's a composite indicator that tracks manufacturing activity in different sectors of the economy. 
• Currently, IIP figures are calculated considering 2011-2012 as the base year.  

It measures the growth rate of industry groups as per:

• Sectoral classification: Mining, Manufacturing, and Electricity.
• Use-based classification: Primary Goods, Capital Goods, Intermediate Goods, Infrastructure/Construction goods, Consumer durables, and Consumer non-durables

The current IIP basket covers 839 representative items under three sectors – 

• Mining – 14.37%
• Manufacturing – 77.63%
• Electricity – 7.99% 

The Eight Core Sector Industries comprise 40.27% of the weight of items included in the IIP.

• The weights of the industries in the Index of Eight Core Industries are as follows: Petroleum Refinery Products - 28.04% > Electricity - 19.85% > Steel - 17.92% > Coal - 10.33% > Crude Oil - 8.98% > Natural Gas - 6.88% > Cement - 5.37% > Fertilizers - 2.63%.