Govt OKs new industrial output index

juices and mobile phones will weigh on measuring the pace of industrial production,as per the new index series approved by the government.

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juices and mobile phones will weigh on measuring the pace of industrial production,as per the new index series approved by the government.

The new index of industrial production which will come into effect from June 10,with the base year 2004-05,has been approved by the Committee of Secretaries (CoS),an official said.

The new items in the Index of Industrial Production (IIP) would also include computer stationary,newspapers,chemicals like ammonia,ammonia sulphate,electrical products like solder power systems,gems and jewellery and molasses.

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On the other hand,obsolete articles like typewriters,loud speakers and VCRs would be taken off to make the series representative of the present-day industrial production and demand scenario.

The base year for the new series will be changed to 200405 from 199394.

The IIP for April would be based on the new model of measuring the countrys factory output. The April data would be released on June 10.

The new IIP series will help policymakers and market participants,the official added.

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The Department of Industrial Promotion and Policy (DIPP) and Central Statistical Organisation (CSO) were jointly working on the new index. Currently the IIP basket has 283 items.

The industrial output data or IIP is released on monthly basis.

The factory output grew by 7.8 per cent in the fiscal 2010-11.