Question
Consider the following statements about the Index of
Industrial Production (IIP) in India: 1.The IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products. 2.The IIP is compiled and published monthly by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation. 3.Mining and manufacturing is part of the index. Which of the statements given above is/are correct?Solution
IIP is an indicator that measures the changes in the volume of production of industrial products during a given period. Hence, statement 1 is correct. 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. It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. Hence, statement 2 is correct.
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