Published: Sat, May 13, 2017
Science | By Carlton Santiago

Revised data shows IIP growing faster, WPI easing

Revised data shows IIP growing faster, WPI easing

Items like gutka, calculators and coloured TV picture tubes have been removed from the new series of Index of Industrial Production with 2011-12 as base year, while steroids and refined palm oil are among those that have found place in it.

The WPI inflation readings, reflecting the annual rate of price rise, under the new base stood at 5.29 per cent in March, 5.51 per cent in February, 4.26 per cent in January, 2.10 per cent in December and 1.82 per cent in November.

In March, industrial output clocked 2.7% growth, slower than the 5.5% growth posted in March 2016.

"The new series show higher growth rates as compared to the old series which can be attributed to shifting of base to a more recent period, increase in number of factories in panel for reporting data and exclusion of closed ones and inclusion of new items and exclusion of old ones", Care Ratings said in a report.

Inflation in the fuel and power segment was 18.52 per cent in April, while that of manufactured products was 2.66 per cent.

The government will anounnce new series data for both the IIP and WPI on Friday.

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In line with the Modi government's push for clean energy, IIP will now also capture renewable electricity production in the new series. Since the GVA doesn't factor in indirect taxes, removing the excise duty component from the WPI in manufactured goods is only natural. The 2004-05 series had 620 items (397 item groups).

173 new items has been added under manufacturing goods.

He also said that with the release of the new series of IIP (base 2011-12), an institutional mechanism has been established for facilitating dynamic revision of the item list of products and the panel of factories, through a Technical Review Committee, chaired by Secretary, Ministry of Statistics. Within this, the mining sector grew 9.7% in March per the new series versus 7.9% as per the old data.

The WPI and IIP data based on new series were not statistically comparable with the earlier data based on 2004-05 base year, T.C.A. Anant, India's chief statistician, told reporters.

The Index of Industrial Production (IIP), which measures short-term changes in Sri Lanka's manufacturing activities, expanded to 105.5 during the first quarter of 2017 (1Q17).

The sector contributes about 60 per cent in the country's gross domestic product (GDP).

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