Mechanism for Monitoring Industrial Activity
The Ministry of Statistics and Programme Implementation (MoSPI) has implemented a mechanism to share inputs on industrial activity in India with relevant ministries and departments. This initiative aims to closely monitor and respond to sector-specific growth.
Monthly Data Sharing
- Information is shared monthly following the release of the official Index of Industrial Production (IIP) data.
- The exercise helps departments stay informed about sectoral developments and enables timely policy responses.
Identification of Lagging Sectors
A government official highlighted the process of identifying sectors with lagging production, such as manufacturing or electricity, and communicating these trends to the respective ministries.
- This process involves writing to the concerned ministry about the year-on-year growth trends.
- It noted that this monitoring exercise enhances data analysis and policy alignment.
Recent Industrial Production Figures
India's industrial production fell to a nine-month low of 1.2% in May due to contractions in the mining and electricity sectors, despite modest growth in manufacturing.
- Manufacturing grew by 2.6%.
- Mining and electricity output contracted by 0.1% and 5.8%, respectively.
- Factors such as early onset of monsoon and weak urban demand contributed to the slowdown.
Inflation Monitoring Mechanism
In addition to industrial trends, MoSPI has a separate mechanism to share data on inflation-driving factors with central ministries and state governments monthly.
- The inputs on inflation are sent to ministries including consumer affairs, agriculture, horticulture, animal husbandry, food processing, and agricultural research.
