tag:blogger.com,1999:blog-42708519569608254122020-07-13T17:56:31.728-07:00Understanding the FundamentalsAjay Srivastavahttp://www.blogger.com/profile/12314316261816194915noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4270851956960825412.post-48709202873702069162020-07-03T10:33:00.002-07:002020-07-03T10:33:40.667-07:00<div dir="ltr" style="text-align: left;" trbidi="on"><br /></div>Ajay Srivastavahttp://www.blogger.com/profile/12314316261816194915noreply@blogger.com0tag:blogger.com,1999:blog-4270851956960825412.post-46106016224874150132020-07-02T09:25:00.000-07:002020-07-02T09:41:07.174-07:00Index of Industrial Production (IIP)<div dir="ltr" style="text-align: left;" trbidi="on"><br /><div class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "trebuchet ms" , sans-serif;">Index of Industrial Production (IIP)<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;">IIP denotes the total production activity that happens in the country during a particular period as compared to a reference period. It helps us to understand the general level of industrial activity in the economy. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;">IIP data is a simple index which provides information about the growth of different sectors of our economy like mining, electricity, Manufacturing & General. The IIP index reflects the growth in India’s industrial activity and excludes all kinds of services. </span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;">The IIP numbers are released on 12th of every month (the date may vary in case of a weekend or other holiday). </span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></div><div class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "trebuchet ms" , sans-serif;">Implications<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;">IIP depicts the growth of industrial activity; better IIP figures indicate increase in industrial production; which makes the markets and investors optimistic. However, decreased IIP figures show the industrial growth is subdued.</span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;"><br /></span></div><div class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "trebuchet ms" , sans-serif;">Sectors in IIP<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;">The products included for calculation of IIP can be segregated into three major sectors:<o:p></o:p></span></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;"></div><ul style="text-align: left;"><li style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;">Manufacturing (77.63%): includes items like food items, machinery, wood furniture etc.</span></li><li style="text-align: justify;"><span style="font-family: Trebuchet MS, sans-serif;">Mining & Quarrying (14.3%): includes mining of coal, oil, other metals etc.</span></li><li style="text-align: justify;"><span style="font-family: "trebuchet ms" , sans-serif;">Electricity (7.99%): includes generation and transmission of electricity (from various sources like - thermal, hydro, solar etc.)</span></li></ul><!--[if !supportLists]--><br /><div class="MsoNormal" style="line-height: 114%; mso-pagination: widow-orphan;"></div><div class="MsoNormal" style="text-align: justify;"><br /></div></div>Ajay Srivastavahttp://www.blogger.com/profile/12314316261816194915noreply@blogger.com0