Statement by Chandrajit Banerjee, Director General, CII on the base revision for IIP and WPI
CII welcomes the release of the IIP data on the new base of 2011-12, that clearly demonstrates a rebound in industrial output to an impressive 5% during FY17, as against 3.4 per cent in the previous year. These signs of an upturn in IIP are encouraging, as it is indicative of stronger manufacturing activity based on consumption demand than was getting reflected in the data captured in the earlier base of 2004-05.
What is significant is that from now on the IIP data would have a more realistic coverage and be reflective of the market realities which would be useful for tracking economic activity. The switch to a new base is a culmination of a sustained effort to align the data with the new GDP series and CII commends the extensive work done by the CSO in this regard, said Mr Chandrajit Banerjee, Director General, CII.
Similarly, the release of new WPI data on the 2011-12 base, makes it more comparable with the CPI which has 2012 as the base. Both CPI and WPI have declined in April, indicating a benign inflation scenario, said Mr Banerjee.
