With reference to Index of Industrial Production IIP consider the following statements 1 It measures...........

Economic Affairs Industrial Policy and Industrial Growth

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With reference to Index of Industrial Production (IIP), consider the following statements

1.It measures short-term changes in the volume of production of a basket of industrial products.

2.In the revised index Electricity sector has more weightage than the mining sector.

3.It is annually released by Ministry of Industry and Commerce.

Which of the statements given above is/are correct?

1 and 3 only

2 only

1 only

1, 2 and 3

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Explanation:

1 only

It measures short-term changes in the volume of production of a basket of industrial products: This statement is correct. The Index of Industrial Production (IIP) is indeed designed to measure the short-term changes in the volume of production of a basket of industrial products. It provides a broad measure of industrial activity in the economy.

In the revised index, the electricity sector does not necessarily have more weightage than the mining sector. The weightage of sectors in the IIP may vary based on the industrial composition and importance of sectors in the economy. It's not a fixed rule that electricity has more weightage than mining.

The Index of Industrial Production (IIP) is not annually released by the Ministry of Industry and Commerce. Instead, it is released by the Ministry of Statistics and Programme Implementation, Government of India, on a monthly basis.

Therefore, only statement 1 is correct.