The basket of goods for Index of Industrial Production has been revised from the base year of 2004-05 to 2011-12. The methodological changes introduced are summarised as below:
The IIP in the new series consists of three sectors i.e. Mining, Manufacturing and Electricity.
The new basket consists of 407 item groups with 259 item groups common with the old basket.
The weights for the new series at the sectoral level have been calculated using the GVA figures from National Accounts Statistics (NAS) with base year 2011–12.
In the revised IIP basket, data on a total of 109 item groups have been collected in value terms rather than in quantities. This is done so as to avoid jumps in data since many of these products have a life span of greater than one month. Such items have been classified as ‘work under progress’.
The value data collected for these item groups have been deflated using the Wholesale Price Index (WPI) 2011-12 in absence of a Producers Price Index.
The Use based classification has replaced Basic Goods with Primary Goods.
A new category named Infrastructure/ Construction Goods has been introduced.
