Press Information Bureau
Government of India
Ministry of Commerce & Industry

03-September-2012 15:29 IST

Target for IIP

 

                        Annual targets for Index for Industrial Production (IIP) are not fixed by the Government. The sectoral annual growth rates of IIP for the last three years i.e. 2009-10 to 2011-12 and April-June, 2012-13, released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, are given respectively in Table -1 below.

 

Table-1: Annual growth rates  of IIP(in per cent)

(Base: 2004-05)

Note: Figures for April, May and June 2012 are provisional.

 

            The index or growth rates for the infrastructure sector are not compiled by the Government. However the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry releases monthly as well as Annual indices and growth rates of the   Eight Core Industries i.e. Coal, Crude Oil, Natural Gas,  Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity.  The combined annual growth rates of the above industries during 2009-10 to 2011-12 and during April-June, 2012-13 are given in the Table-2 below:

Table-2: Annual growth rates of Eight Core Industries (in per cent)

(Base: 2004-05)

Sector	Weight	2009-10	2010-11	2011-12	April-June, 2012-13
Coal	4.38	8.1	-0.2	1.2	6.4
Crude Oil	5.22	0.5	11.9	1.0	-0.5
Natural Gas	1.71	44.6	10.0	-8.9	-11.1
Refinery Products	5.94	-0.4	3.0	3.2	3.2
Fertilizers	1.25	12.7	0.0	0.4	-12.2
Steel	6.68	6.0	13.2	7.0	3.6
Cement	2.41	10.5	4.5	6.7	9.9
Electricity	10.32	6.2	5.6	8.1	6.4
Overall weight/growth rate	37.90	6.6	6.6	4.4	3.6

Note: Figures for April, May and June 2012 are provisional.

 

As may be seen from the Tables  1 and 2 above, the overall  growth rates of Eight Core Industries were higher than the  overall IIP during 2009-10, 2011-12 and during April-June, 2012-13.  However, during  2010-11, the growth rate of Eight Core Industries was less than that of IIP. 

While no distinct pattern can be established between the growth rates of Eight Core Industries and IIP,  these Industries having a combined weight of 37.90 per cent  in the IIP, are expected to influence the growth pattern of IIP as well.

It may be mentioned that there has been a moderation in the growth rates of both overall IIP and the Eight Core Industries in 2011-12 and April-June, 2012-13.  Major reasons for the moderation include global economic uncertainty, sluggish domestic demand, hardening of interest rates etc. Regulatory and environmental issues, court orders, decline in international demand for metallic minerals etc. are also affecting production, especially in the mining sector.

This information was given by Minister of State for Commerce and Industry, Shri Jyotiraditya M. Scindia in a written reply to a question raised in the Lok  Sabha  today.

 

DS/GK

IIP growth reporting: moderation noted and core industries' combined weight influences overall industrial production patterns. The Government does not fix annual IIP targets; the CSO publishes sectoral IIP growth rates and the Department of Industrial Policy and Promotion publishes indices for the Eight Core Industries, which carry a combined weight of 37.90 per cent in the IIP and thus influence overall IIP movements. Comparative data for 2009-10 to 2011-12 and provisional April-June 2012-13 show variation and a moderation in growth, attributed to global economic uncertainty, sluggish domestic demand, higher interest rates, regulatory and environmental constraints, court orders and weaker international mineral demand.