Inputs to Index of Industrial Production now being shared with ministries
MoSPI
) has established a mechanism to share inputs on
industrial activity in India
with relevant ministries and departments to closely monitor and respond to
sector-specific growth
.
The information is shared monthly through this exercise after the official
Index of Industrial Production
(IIP) data is released.
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"We identify sectors where production is lagging-for instance, manufacturing or electricity-and write to the ministry concerned about the year-on-year growth trends," said a government official, who did not wish to be identified.
ET Bureau
Through this process, the departments concerned are made aware of sectoral developments, helping them identify and address issues.
"This is a good monitoring and tracking exercise, which enhances the ability to analyse data more effectively and align that with appropriate policy responses," said Sakshi Gupta, principal economist at
HDFC Bank
. "It better enables ministries to take timely action and adapt strategies based on developing trends in particular sectors."
Live Events
The mechanism was introduced by the MoSPI earlier this year, the official said, adding, "Inputs have been sent to the
Ministry of Power
and the Department for Promotion of Industry and Internal Trade."
India's industrial production fell to a nine-month low of 1.2% in May, owing to a contraction in mining and electricity sectors, even as
manufacturing sector growth
remained modest, according to official data released last month.
Experts attributed the slowdown to factors such as the early arrival of the monsoon and weak urban demand.
Among the three major sectors, only manufacturing grew in May, expanding 2.6%. Mining and electricity output contracted 0.1% and 5.8%, respectively.
Official IIP figures for June will be released later this month.
In addition to tracking industrial trends, the MoSPI has instituted a separate mechanism to share data on inflation-driving factors with central ministries and state governments every month, ET reported earlier.
The inputs on inflation have been sent to ministries and departments such as consumer affairs, agriculture, horticulture, animal husbandry, food processing and agricultural research.
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