Why in News?
India’s Index of Industrial Production (IIP) recorded 6.7% year-on-year growth in November 2025, the highest in the last 25 months, driven mainly by manufacturing and capital goods, after a weak October due to base and calendar effects.
Description:
Key Terms:
- Calendar effect: Variations in economic data caused by the timing of festivals, holidays, or number of working days, which temporarily affect production levels without changing underlying demand.
- Base effect: Distortion in growth rates when current performance is compared with an abnormally high or low reference period, making growth appear artificially strong or weak.
About IIP:
A composite indicator that measures short-term changes in the volume of production of a selected basket of industrial products during a given period relative to a base period.
Institutional / Administrative Framework:
- Ministry: Ministry of Statistics and Programme Implementation (MoSPI).
- Releasing Authority: National Statistical Office (NSO).
Key Technical Parameters:
- Base Year: 2011-12.
- Frequency: Monthly.
Classification:
- Sectoral Classification: Manufacturing (77.6%) > Mining (14.4%) > Electricity (8.0%)
- Use-Based Classification:
- Primary Goods: ~34.0% (Highest weightage).
- Intermediate Goods: ~17.2%.
- Consumer Non-Durables: ~15.3%.
- Infrastructure/Construction Goods: ~12.3%.
- Consumer Durables: ~12.8%.
- Capital Goods: ~8.2% (Lowest weightage).
Limitations of IIP:
- Does not include services sector
- Highly volatile month-to-month
- Sensitive to base effects and seasonal factors
La Excellence IAS Academy, the best IAS coaching in Hyderabad, known for delivering quality content and conceptual clarity for UPSC 2025 preparation.
FOLLOW US ON:
◉ YouTube : https://www.youtube.com/@CivilsPrepTeam
◉ Facebook: https://www.facebook.com/LaExcellenceIAS
◉ Instagram: https://www.instagram.com/laexcellenceiasacademy/
GET IN TOUCH:
Contact us at info@laex.in, https://laex.in/contact-us/
or Call us @ +91 9052 29 2929, +91 9052 99 2929, +91 9154 24 2140
OUR BRANCHES:
Head Office: H No: 1-10-225A, Beside AEVA Fertility Center, Ashok Nagar Extension, VV Giri Nagar, Ashok Nagar, Hyderabad, 500020
Madhapur: Flat no: 301, survey no 58-60, Guttala begumpet Madhapur metro pillar: 1524, Rangareddy Hyderabad, Telangana 500081
Bangalore: Plot No: 99, 2nd floor, 80 Feet Road, Beside Poorvika Mobiles, Chandra Layout, Attiguppe, Near Vijaya Nagara, Bengaluru, 560040