New IIP, WPI Series Introduced

The government has released new-look index of industrial production (IIP) and the wholesale price index (WPI) which have been built on the new series of data. The impact of demonetization still persisted on industrial production, particularly manufacturing

the New IIP, WPI Series
  • The key macroeconomic indicators
    • IIP (Index of Industrial Production)
    • WPI (Wholesale Price Index)
    • CPI (Consumer Price Index)

Shifting of Base Years

  • The base year for the indices in the new series has shifted to 2011 - 12, against the earlier 2004 - 05.
  • The series has been revised after eight years.
  • The common base year of 2011 - 12 is aimed at reducing discrepancies.

About IIP

  • The new series of IIP will include 809 manufacturing products and 55 mining products that are re-grouped into 521 item groups
  • The new series of IIP will include technology items like
    • Smart phones
    • Tablets
    • LED television
  • New IIP series:
Table Contant shows About New IIP series
SectorBase year 2011 - 12Base year 2004 - 05
Weights (%) Item groupsWeights (%) Item groups
Mining14.373114.1571
Manufacturing77.63340575.527397
Electricity7.994110.3161
Total100407100399
  • In the new series, there has been an increase in number of factories in panel for reporting data and closed ones have been removed.

About WPI

  • WPI will continue to constitute three major groups namely
    • Primary articles
    • Fuel & power
    • Manufactured products
  • The number of items covered in the new series of the WPI has increased from 676 to 697.
  • 199 new items have been added and 146 old items have been dropped.
  • The new series of WPI, prices used for compilation do not include indirect taxes in order to remove impact of fiscal policy
  • Under the primary articles, new added vegetables and fruits like
    • Radish
    • Carrot
    • Cucumber
    • Bitter gourd
    • Mosambi (sweet lime)
    • Pomegranate
    • Jackfruit
    • Pear
  • Under the Fuel & power, new added items like
    • Copper concentrate
    • Lead concentrate and
    • Garnet
  • Other items dropped like
    • Copper ore
    • Gypsum
    • Kaolin
    • Dolomite
    • Magnesite
  • Under the manufacturing items, 173 new added items including
    • Conveyer belt
    • Rubber tread
    • Steel cables
    • Tissue paper
    • Wooden splint
  • 135 items dropped like
    • Khandsari
    • Poppadom
    • Video CD players
  • Under the new series of WPI, weight of manufactured items has decreased to 64.2 per cent from 64.9 per cent in old series.
  • Similarly, the weight of fuel and power has decreased to 13.1 per cent from 14.9 per cent.
  • The weight of primary items has increased to 22.6 per cent from 20.1 per cent.

Examrace Team at Aug 23, 2021