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Government of India
Ministry of Commerce & Industry
03-September-2012 15:29 IST
Target for IIP
MINISTRY OF COMMERCE AND INDUSTRY

 

                        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)

 

Mining

Manufacturing

Electricity

Overall

2009-10

7.9

4.8

6.1

5.3

2010-11

5.2

9.0

5.5

8.2

2011-12

-2.0

3.0

8.2

2.9

April-June 2012-13

-1.1

-0.7

6.4

-0.1

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