How Are You Mr. Gautam Adani?

****How Are You Mr. Gautam Adani?****

In economics,everything will be measured in terms of an Index. Industrial activity of an economy is increasing or decreasing will be measured in terms of index of Industrial Production(IIP).

The eight core industries(very important) constitute around 40% of the weight of items that are included in IIP. These eight industries are Electricity/Steel/Refinery Products/Crude Oil/Coal/Cement/Natural Gas/Fertilisers.

(Way to remember: Crude oil/Coal/Natural gas imported & refinery Products,Fertilisers,Cement are made from it. Electricity is used for Steel manufacturing.)

It is published by National Statistical Office(NSO) of MoSPI.

Base year is 2011-12(We have already discussed what the base year is. We assume that in 2011-12 ,composite IIP was 100. This same base year is used for CPI & WPI based inflation and other economic indices.)

Highest weightage: Refinery Products(~28%)

Then Electricity(~20%),Next is Steel(~18%).

Lowest is Fertilisers(2.63%)

So in terms of weightage: Refinery Products>Electricity>Steel>Coal>Crude Oil>Natural Gas>Cement>Fertilisers.(Very Very Important)

Let's understand one sentence. 

"In January,2022 IIP stands at 138.4".

It means industrial production increased in January,2022 as compared to base year(January 2012). IIP at base year is taken as 100.

(TO BE CONTINUED)

BY,HEMEN SARMA

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