New IIP series to focus on data collection
The new index, will not only boast of a revamped and much more up-to-date basket of commodities, but has also tried to rectify problems of data collection and reporting that is blamed for the sudden highs and lows in monthly numbers of factory output.
“The numbers that we are getting are much more robust now and lack the volatility that is seen in the current series,” said a senior government official.
As part of the exercise, the government has now made provisions for collecting data from alternate units in case a reporting unit shuts down. At present, in such a case, the production is registered as nil and gives a skewed picture. “In sectors like steel and cement there are just a few producers from whom production numbers are collected. But in most other sectors, there are a large number of manufacturers and the sample for data collection must reflect this,” the official said.
In addition, the government also plans to ensure that production units report correct data. “We have found that a lot of times units send us figures on sales instead of production. This is completely erroneous,” the official said, adding that reporting units will be strictly monitored.
The ministry of statistics and programme implementation along with the department of industrial policy and promotion are
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