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Lesser weightage for manufacturing in new series

T. C. A. Anant

NEW DELHI:The Centre on Friday released a new series for Index of Industrial Production (IIP) to provide for a much closer reflection of the present industrial scenario.

A major highlight of the new series is a change in the base year for the index from 1993-94 to 2004-05. Consequently the weighting diagram has undergone a change. The manufacturing sector, which had a weightage of 793.58 [out of a total of 1,000] in the old series would now have a weightage of 755.27, resulting in an increase in the weightages for both mining and electricity sectors [the other two sectors in the index]. Weightage for mining goes up from 104.73 to 141.57 and that for electricity from 101.69 to 103.16.

However, the new index covers the manufacturing sector in a better manner. It covers a total of 620 items in the sector as against 473 items in the old index.

There is also some change in the items covered under the index. The new items include skimmed and pasteurised milk, colour television sets, gems and jewellery, apparels, newspapers, aluminium, wooden furniture, coir mats and matting, woollen carpets, marble tiles/slab, and molasses. The items that have been dropped include typewriter and tape recorder.

Further, there has been some change in the agencies from where the data for the index are sourced. The Departments of Fertilizer and Chemical and Petrochemicals have been included as the industries covered by them are growing in importance, while the Ministry of Micro, Small and Medium Enterprises has been excluded.

Secretary, Ministry of Statistics and Programme Implementation, and Chief Statistician of India, T. C. A. Anant, said the Ministry of Micro, Small and Medium Enterprises had been excluded as it was difficult to get data on micro and small enterprises. However, the gap would be soon filled up. The Central Statistical Organisation (CSO) and the office of the Development Commission (MSME) are working towards formulating a separate system for collecting data from the sector. Once that is ready, a separate index for the sector would be developed and that would be dovetailed into the general index of all-India IIP by assigning a suitable weightage.

In any case, he said, bigger units of the sector, which are part of the coverage of the annual survey of industries [ASI], are already covered in the basket of items under the general index.

He also noted that for comparison and academic purposes, the quick estimate of IIP pertaining to the old series would also be made available through the Ministry's website for the next two months.

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