News

Domestic industrial production grew 4.0 per cent in September, according to official data released on Tuesday. That marked the same level of expansion in industrial production -- also referred to as factory output -- as the previous month. One of the main macroeconomic indicators in the country used widely by economists and policymakers, industrial production is gauged by the Index of Industrial Production (IIP).

Here are 10 things to know about the latest factory output data set:

(Industrial production growth was recorded at 4.0% in September, according to official data.)

The infrastructure and construction goods group expanded at 10.2 per cent -- a second straight month of double-digit growth driven by the government’s ongoing capex in highways, railways and ports.

The latest monthly data comes at a time when India continues to be the world's fourth-largest economy. India's GDP growth was recorded at a better-than-expected 7.8 per cent in the April-June quarter, picking up from 7.4 per cent in the previous three months.

Here are answers to a few frequently asked questions (FAQs) about IIP data:

What is the Index of Industrial Production?

IIP is one of the official high-requency macroeconomic indicators. It gauges productivity in the country's factories.

What is the frequency at which IIP data is recorded and released?

The IIP data is measured on a monthly basis.

Which department releases factory data?

The data is released by the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI).

What are the main sectors covered under IIP?

IIP covers three broad sectors:

What is the significance of IIP data?

IIP serves as a key indicator of the industrial health of the economy.

Policymakers, investors and analysts track this data closely to gauge production trends and economic growth.