New IIP from Jan; reflects better picture of factory output

The government is likely to come out with a more representative data on industrial production from January next year that would include about 100 new items, while excluding the obsolete ones.

"The December data is expected to come out on January 12, 2011, for which the new series of index of industrial production (IIP) would be released," an official told PTI.

The new series would be more representative and will have more items in the rejigged basket.

Besides, it will take 2004-05 as the base year that will reflect industrial scenario better than the base of 1993-94 used currently.

"The industry ministry is waiting for Planning Commission's opinion. They have some issues, that will be sorted out soon. The new series will then be approved by Committee of Secretaries," the official added.

Currently, IIP basket has about 350 items for calculating the monthly factory output figures. The new series would be more representative and would constitute over 500 products, the official said.

It is also expected to do away with obsolete items and add those products which have entered the markets in recent years. The official, however, did not divulge the details of new products and the old ones which will be deleted.

Industrial growth slowed down to 5.6 per cent in August from 10.6 per cent in the same month of the previous fiscal.

IIP data has been often criticised for not catching up with the times and providing archaic figures, compared to the ones provided by other agencies like Centre for Monitoring Indian Economy (CMIE).

According to industry body Ficci there is a strong momentum in industrial growth and it is expected to expand by 9 per cent in the current financial year.

The government has recently rolled out a new wholesale price-based index for measuring inflation.