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To better gauge their factory performance, State governments are now working to compile quarterly estimates of industrial production.
“At present, just 14 States release their own Index of Industrial Production (IIP). We are now working with all States to encourage them to produce regular and frequent data and many more of them have evinced interest in the exercise,” said a senior government official.
The Central Statistics Office (CSO), which compiles and releases the monthly all-India IIP, recently held discussions with States on the issue.
If all States begin to compile industrial performance statistics using a uniform methodology and time frame, not only will it provide a better understanding of manufacturing trends in each State but also help in providing a comparison of economic trends across States.
A number of States, such as Tamil Nadu, Delhi, Haryana and West Bengal, have compiled and released IIP data.
“We had invited senior officials from States to discuss how they can compile IIP data,” said the official, adding that the CSO has already worked out the item-wise IIP basket for each State.
Since industrial production varies in each State, the CSO had to compile specific IIP baskets for each State using the Annual Survey of Industries 2011-12. States can rework the item baskets if required. They would use the base year of 2011-12 and the revamped IIP series that the Centre is working on.
Most States are now on board and are expected to work with the CSO to release quarterly data on IIP.
A more frequent data exercise may not be possible as many have pointed to a resource constraint and lack of trained manpower.
“We expect that States will finalise the exercise over the course of the year,” said the official.
A Committee of Secretaries led by the Cabinet Secretary has also approved the Centre’s revamped IIP series. “It was cleared last month but inter-ministerial comments have been sought before final approval,” said a source, adding that its launch will be decided soon.
The new IIP series with a base year of 2011-12, which has been a work-in-progress for long, will also have a fresh and more modern basket of 450 items, including plasma TVs and tabs, that would reflect current consumption patterns. The current IIP series has a base year of 2004-05 and 399 items.
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