Expanded IIP basket from April data: Sen
The government will come out with a more representative data on industrial production by adding nearly 150 new items and deleting the obsolete ones from the bask of goods and services that make up the IIP data, from the April estimate onwards.business Updated: Mar 28, 2010 11:22 IST
The government will come out with a more representative data on industrial production by adding nearly 150 new items and deleting the obsolete ones from the bask of goods and services that make up the IIP data, from the April estimate onwards.
The April data will come out in June, for which the new series of index of industrial production (IIP) would be released, chief statistician Pronab Sen has said.
"New IIP series (will be out) from the April estimate onwards. That means it will come in June," Sen said, adding the new series would be more representative and will have more items in the new basket.
Currently, around 350 items are in the IIP basket to calculate the monthly industrial production figure. The new series would be more representative and would constitute around 500 items, Sen said.
The new IIP series will take 2004-05 as the base year that will reflect industrial scenario better than the base of 1993-94 used currently.
The new series is expected to do away with obsolete items and add those products, which have entered the markets in recent years.
On a query whether the expansion of items would lead to a surge in the IIP numbers, Sen said, "probably not. I don't think it would be very different."
The factory production grew 16.7 per cent in January on robust manufacturing activity; however, it was slower than the record 17.6 per cent expansion reported in December.
Economic and monetary stimulus provided by the government to spur the economy, following the onset of the global financial crisis since the third quarter of 2008, catapulted industrial growth into double-digits for the fifth month in a row in January from sluggish growth in earlier months.
According to rating agency Crisil principal economist Dharmakriti Joshi, "there is a strong momentum in industrial growth. We are expecting to close this fiscal with overall 9 per cent growth of industry. Next fiscal we are expecting industry to grow at 8.5 per cent."
Besides, a new wholesale price-based index for measuring inflation would be rolled out from May 14, said an official. The new index, with 2004-05 as the base year, will have 250 new items and is expected to provide a more realistic picture of price rise and its impact on people.
The new series would have about 680-685 items that include mobile phones, LCD television sets among others, the official said, adding close to 25 items would be knocked off from the new inflation series.
The wholesale price inflation is at present calculated on the basis of 1993-94 as the base year.