Saturday 12 May 2012

Revision in Index of Industrial Production (IIP)

The Minister of State (Independent Charge) for Statistics and Programme Implementation Shri Srikant Kumar Jena has said growth rate of Index of Industrial Production (IIP) for November 2011 was reported as 5.9% as First Revision on 10th February 2012. Subsequently the growth rate for November 2011 has been revised as Final Revision to 6.0% on 12th April 2012. Similarly, the growth rate for December 2011 was released as 1.8% as Quick Estimate on 10th February 2012 and has been subsequently revised to 2.5% as First Revision on 12th March 2012. 

In a written reply in the Rajya Sabha today Shri Jena said, growth rate in IIP as per Quick Estimate for January 2012 was released as 6.8% on 12th March 2012. Subsequent to this release and during preparation on IIP for February 2012, it was detected that in the IIP for January 2012, the production data of sugar was incorrectly reported. Immediately after detection of the error, the revised growth rate for the month of January 2012 was compiled. Due to this change and also minor updation of data received from other source agencies, the growth rate for January 2012 was revised from 6.8% to 1.1% (first revision) on 12th April 2012. 

Shri Jena said GDP on the demand side is derived as GDP at factor cost plus indirect taxes less subsidies. Thus, the growth rate of demand side of GDP does not get affected by the change in export figures. Correction in Q-1 expenditure GDP growth rate from 3.7% to 10% for the year 2010-11 was done in September 2010 due to an inadvertent error in the application of appropriate price deflator. 

He said, revision in IIP and other short term economic indicators are done as per design based on availability of updated data. Such revisions do not necessarily indicate errors in compilation. 

The Minister said, in order to prevent recurrence of errors in reporting production data, all the concerned source agencies have been requested to adhere to the time frame for supplying error free data for compilation of IIP. Further, a Working Group has been set up under the Chairmanship of Dr. Saumitra Chaudhuri, Member, Planning Commission, for revision of base year of IIP, which has to inter-alia recommend for appropriate method of data collection for IIP.

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