Inputs to Index of Industrial Production now being shared with ministries
The Ministry of Statistics and Programme Implementation (MoSPI) has established a mechanism to share inputs on industrial activity in India with relevant ministries and departments to closely monitor and respond to sector-specific growth. The information is shared monthly through this exercise after the official Index of Industrial Production (IIP) data is released."We identify sectors where production is lagging-for instance, manufacturing or electricity-and write to the ministry concerned about the year-on-year growth trends," said a government official, who did not wish to be identified.
Through this process, the departments concerned are made aware of sectoral developments, helping them identify and address issues. "This is a good monitoring and tracking exercise, which enhances the ability to analyse data more effectively and align that with appropriate policy responses," said Sakshi Gupta, principal economist at HDFC Bank. "It better enables ministries to take timely action and adapt strategies based on developing trends in particular sectors."The mechanism was introduced by the MoSPI earlier this year, the official said, adding, "Inputs have been sent to the Ministry of Power and the Department for Promotion of Industry and Internal Trade." India's industrial production fell to a nine-month low of 1.2% in May, owing to a contraction in mining and electricity sectors, even as manufacturing sector growth remained modest, according to official data released last month.Experts attributed the slowdown to factors such as the early arrival of the monsoon and weak urban demand.Among the three major sectors, only manufacturing grew in May, expanding 2.6%. Mining and electricity output contracted 0.1% and 5.8%, respectively.Official IIP figures for June will be released later this month.In addition to tracking industrial trends, the MoSPI has instituted a separate mechanism to share data on inflation-driving factors with central ministries and state governments every month, ET reported earlier. The inputs on inflation have been sent to ministries and departments such as consumer affairs, agriculture, horticulture, animal husbandry, food processing and agricultural research.
Through this process, the departments concerned are made aware of sectoral developments, helping them identify and address issues. "This is a good monitoring and tracking exercise, which enhances the ability to analyse data more effectively and align that with appropriate policy responses," said Sakshi Gupta, principal economist at HDFC Bank. "It better enables ministries to take timely action and adapt strategies based on developing trends in particular sectors."The mechanism was introduced by the MoSPI earlier this year, the official said, adding, "Inputs have been sent to the Ministry of Power and the Department for Promotion of Industry and Internal Trade." India's industrial production fell to a nine-month low of 1.2% in May, owing to a contraction in mining and electricity sectors, even as manufacturing sector growth remained modest, according to official data released last month.Experts attributed the slowdown to factors such as the early arrival of the monsoon and weak urban demand.Among the three major sectors, only manufacturing grew in May, expanding 2.6%. Mining and electricity output contracted 0.1% and 5.8%, respectively.Official IIP figures for June will be released later this month.In addition to tracking industrial trends, the MoSPI has instituted a separate mechanism to share data on inflation-driving factors with central ministries and state governments every month, ET reported earlier. The inputs on inflation have been sent to ministries and departments such as consumer affairs, agriculture, horticulture, animal husbandry, food processing and agricultural research.
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