Index of industrial production is a calculation for industrial material production during a particular period. The IIP for UPSC is important in today’s time because it has been developed by 11.5% in July. For the UPSC aspirants, it is extremely important to understand the points related to the IIP.
The candidates of the most prestigious exam in India search for different topics to excel in and fetch high scores from the examiners. If you have the ambition to serve the country with your wisdom, intelligence, courage, and integrity, you need to get high marks in this exam to see your name on the final list.
So, if you are working hard for your dreams, you need to work in the right direction too. Let’s gather the information and facts about the IIP for UPSC.
Index of Industrial Production (IIP)
The news related to IIP is being published and broadcasted on different media forms respectively. The reason behind popularizing the index is the increase in the output of the index by 11.5%. The increment is seen in July. As compared to a 10.5% contraction a year ago, this is a development vision for the nation. The calculation is made and declared as per quick estimates from the National Statistical Office (NSO). Let’s understand the key points of the IIP for UPSC:
#1. The growth can be traced to Mining, manufacturing, and electricity departments. The recorded growth of 19.5%, 10.5%, and 11.1% are seen respectively in these spheres. This development albeit is driven by favourable base effects on each sphere.
#2. The infrastructural output of the country has been increased by 9.4% in the year 2021. The infrastructural output is the output from eight core sectors of the nation.
#3. The index has shown a big gap between the first and the second COVID 19 wave. The grades for industrial production have now been growing up. The recovery can be owned by the COVID 19 lockdown which affected the economic activity in the complete 2020.
IIP for UPSC
The index of Industrial Production is important for the UPSC candidates to understand because the economy is affected by this concept. It is prominently an indicator of the calculation of the volume of the production of different industrial products.
This index is compiled and published monthly. The organization responsible for the index is the National Statistical Office (NSO). It is the Ministry of Statistics and Programme Implementation. It calculates the industry growth in two sectors under this classification:
#. Broad sectors, namely, Mining, Manufacturing, and Electricity.
#. Use-based sectors are Basic Goods, Capital Goods, and Intermediate Goods.
You need to read the article thoroughly to fetch each aspect of the IIP for your UPSC preparation.
IIP Importance for UPSC Preparation
The importance of IIP is magnificent for the UPSC candidates because it is asked in the UPSC exam. You must go through the complete article and make UPSC notes out of the information. The basic importance of IIP is that It is used by government agencies.
The government agencies that use the IIP are the Ministry of Finance, the Reserve Bank of India, etc, for policy-making purposes. The Index of Industrial Production always remains relevant and significant for the measurement of the estimates of GDP, Gross Domestic Product on the quarterly and advanced period.
The eight-core sectors of the index constitute 40.27% of the index products’ weight. The list of the sectors according to the decreased weightage is:
Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
Therefore, understand each point related to the Index of Industrial Production with the help of this article and perform better in the UPSC exam.
Hopefully, all the information and details given in this article have helped you to prepare for the UPSC examination. Well, you must be aware of each happening going on in the country to fetch high scores in this exam. Every candidate puts their best efforts to shine in the paper.
You have to do something extra to combat the competition challenge and emerge as a topper. If you are confused about any statistics, facts, or information regarding this topic or any other topic of the UPSC notes, you can go and ask the experts on the UPSC Pathshala website.
Answers to all your questions are available on the website in the form of articles as well as professional lectures. The website is considered the best suited for the UPSC exam because the experts resolve each of your questions with diligence and priority.
The lectures are understandable, reliable, and perfect for all the subjects and concepts of the UPSC exam. Therefore, make your choice now and step ahead towards success in the future.