EconPapers    
Economics at your fingertips  
 

What does the new 2011-12 IIP series tell about the Indian manufacturing sector?

Radhika Pandey (), Amey Sapre () and Pramod Sinha

Indian Growth and Development Review, 2018, vol. 11, issue 2, 90-106

Abstract: Purpose - This paper aims to discuss the changes in the new 2011-12 base year series of the Index of Industrial Production (IIP) to determine whether the new series has improved the understanding of the growth in the manufacturing sector. Design/methodology/approach - This paper develops a simple framework to separately estimate the contribution of value- and volume-based commodities in the growth of the manufacturing index. The authors present a case study by analysing the growth performance of IIP drugs and pharmaceuticals sector by comparing it with real net sales of a common sample of firms in this segment. Findings - The authors find that growth in value-based commodities contributes significantly in moving the index in either direction, and that high growth in value-based commodities coincides with periods of low inflation. On comparability, using real net sales as an alternate indicator of industrial output for the pharmaceuticals sector, the authors find that IIP and real net sales show contrasting trends, thereby raising issues of reliability. The authors also find that the IIP shows a disconnect with growth rates from Annual Survey of Industries for several industries. Practical implications - The divergence between two measures of industrial activity raises crucial questions on the representativeness of the IIP. Originality/value - The study builds a framework to separately estimate the contribution of value- and volume-based commodities in the growth of the manufacturing index.

Keywords: Manufacturing; Industrial production (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.emeraldinsight.com/10.1108/IGDR-12-2017 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers

Related works:
Working Paper: What does the new 2011-12 IIP series tell us about the Indian manufacturing sector? (2017) Downloads
Working Paper: What does the new 2011-12 IIP series tell us about the Indian manufacturing sector? (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:igdrpp:igdr-12-2017-0110

Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emerald.com/igdr.htm

Access Statistics for this article

Indian Growth and Development Review is currently edited by Professor Prabal Roy Chowdhury and Professor Chetan Ghate

More articles in Indian Growth and Development Review from Emerald Group Publishing
Bibliographic data for series maintained by Virginia Chapman ().

 
Page updated 2023-01-12
Handle: RePEc:eme:igdrpp:igdr-12-2017-0110