Q. Consider the following statements regarding the Index of Industrial Production (IIP):
Which of the above statements is/are incorrect?
Q. Consider the following statements regarding the Index of Industrial Production (IIP):
Which of the above statements is/are incorrect?
The correct option is D 1 and 2 only
Explanation:
Statement 1 is incorrect: The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity, and manufacturing. It is compiled and published monthly by the National Statistics Office (NSO), Ministry of Statistics, and Programme Implementation six weeks after the reference month ends.
IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Statement 2 is incorrect: The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Statement 3 is correct: The eight core industries are Electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilisers. The current base year is 2011-2012.
Statement 4 is correct: It is used for estimating the Gross Value Added of the manufacturing sector quarterly.
- Note: GVA can be defined as output produced after deducting the intermediate value of consumption. This can also be mentioned as : GVA= Gross Domestic Product + Subsidies on products – Taxes on products.
Explanation:
Statement 1 is incorrect: The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity, and manufacturing. It is compiled and published monthly by the National Statistics Office (NSO), Ministry of Statistics, and Programme Implementation six weeks after the reference month ends.
IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
Statement 2 is incorrect: The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Statement 3 is correct: The eight core industries are Electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilisers. The current base year is 2011-2012.
Statement 4 is correct: It is used for estimating the Gross Value Added of the manufacturing sector quarterly.
- Note: GVA can be defined as output produced after deducting the intermediate value of consumption. This can also be mentioned as : GVA= Gross Domestic Product + Subsidies on products – Taxes on products.
