The Hindu Business Line : Industrial production index to get new base year

New Delhi, Oct 26 A new set of indices for measuring growth in industrial production, SSI sector performance and calculation of consumer prices in urban areas are on the cards.

The fast paced change in income and consumption patterns was an important factor behind the Government’s plan to come up with new indices.

The new index of industrial production (IIP) is likely to be the first off the block and may cover over 800 item groups with a new base year of 1999-2000, according to the Central Statistical Organisation (CSO) Additional Director-General (ADG), Mr P.K. Ray.

The current IIP has 1993-94 as its base year and covers about 400 items.

“The new IIP is under examination and has been sent to renowned economists for their comments. We will release it soon after receiving their comments and incorporating necessary changes”, Mr Ray said.

Consumer price index

Also on the drawing board is a consumer price index that would help measure price rise in urban areas, according to Mr Pronab Sen, Chief Statistician of India.

The consumer price index for urban areas would replace the existing consumer price index for urban non-manual employees.

On whether the wholesale price index (WPI) was reflecting the true state of price rise, Mr Sen said, “It is a fact that WPI does not reflect consumer prices. One needs to look at CPI, which is announced every month, to see price behaviour at the consumer end”.

Meanwhile, Mr Sen on Friday released a new CSO publication titled “National Accounts Statistics-Sources and Methods 2007”.

This publication describes the sources and methods used in the estimation of macro-economic aggregates, domestic product, consumption expenditure, saving, capital formation, capital stock, accounts of the public sector and consolidated accounts of the nation.

These are presented in the CSO’s annual publication ‘National Accounts Statistics’.

Also present on the occasion were Dr S.K. Nath, Director-General of CSO, and other senior officials.