Index of Industrial Production (IIP) - Manufacturing

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Source: CMIE Economic Outlook, 1 Finance Research

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What does the Index of Industrial Production (IIP) for Manufacturing represent?

The Index of Industrial Production (IIP) for Manufacturing represents the changes in the volume of production of a basket of industrial products (809 items) in the manufacturing sector.
It is an essential component of the broader IIP and has a weight of 77.63% in IIP.

It is a major indicator to assess the performance and health of the manufacturing sector, which is a critical component of India’s industrial sector.
Reflect the short-term economic trends in the manufacturing industry, thus providing insights into the sector's current state and future trajectory.
Helps to understand the manufacturing sector's contribution to the overall economy, which has implications for employment, investment and formulating economic policies and strategies.

An increasing production growth in the IIP for Manufacturing suggests expansion and growth in the manufacturing sector, supporting positive economic conditions. A declining trend, however, can signal a slowdown or contraction in manufacturing activities.
The IIP - Manufacturing data can be correlated with other economic indicators such as GDP growth, employment data, and export-import statistics to provide a comprehensive view of the economy’s health and industrial development.