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Inviting comments on Discussion Paper on “Substitution of Factories in the Compilation of the Index of Industrial Production”

Inviting comments on Discussion Paper on “Substitution of Factories in the Compilation of the Index of Industrial Production”
आरंभ करने की तिथि :
Dec 02, 2025
अंतिम तिथि :
Dec 10, 2025
17:30 PM IST (GMT +5.30 Hrs)
प्रस्तुतियाँ समाप्त हो चुके

National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) is undertaking the Base Revision Exercise of the Index of Industrial ...

National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) is undertaking the Base Revision Exercise of the Index of Industrial Production (IIP) to ensure that the index remains aligned with the current structure and dynamics of India’s industrial sector.

As part of this initiative, MoSPI has released a Discussion Paper 1.0 titled “Substitution of Factories in the Compilation of the Index of Industrial Production”, which details the proposed methodology for the upcoming IIP series and seeks to enhance accuracy and representativeness in future compilations.

The Ministry invites views, comments, and suggestions from experts, academicians, Central & State Government departments, financial institutions, industry bodies, and all other stakeholders. Feedback may be shared at: iipcso@nic.in

Access the Discussion Paper
Click Here (PDF)

फिर से कायम कर देना
238 सबमिशन दिखा रहा है
Khushrajpatel
Khushrajpatel 3 महीने 4 दिन पहले
part -6 Expected Benefits of the Proposed Substitution System If implemented, the proposed substitution framework will lead to: 1. More accurate and realistic IIP values, leading to better economic analysis. 2. Reduction in non-response bias because inactive units will be replaced. 3. Better sectoral coverage, especially in high-growth industries. 4. Stronger policymaking, particularly for sectors receiving government incentives. 5. Improved investor confidence, as IIP is used extensively in investment decisions. 6. Greater international comparability, as many countries follow dynamic frames for industrial index compilation. By refining the factory panel periodically—whether annually or biennially—India can align its statistical system with global best practices. Part -7 next one
Khushrajpatel
Khushrajpatel 3 महीने 4 दिन पहले
Part-5 Use of Technology and Digital Platforms:- One of the strengths of the discussion paper is its focus on digital data submission and automation. The adoption of the Generalised Data Dissemination System (Gudd) or a similar online platform will drastically improve the timeliness and quality of factory returns. Linking IIP-reporting factories with GST and MCA databases will also reduce duplication, capture new units faster, and help detect inactive units. Technology-enabled surveys will improve the accuracy of industrial statistics and reduce the burden on both factories and statistical officers. Part -6 next
Khushrajpatel
Khushrajpatel 3 महीने 4 दिन पहले
Part -4 Criteria for Substitution:- The discussion paper proposes a rational and transparent criteria-based mechanism for substitution. These include: Removing factories that have been non-responding for several months. Removing factories that are permanently closed based on administrative verification. Adding new factories that meet size thresholds and contribute significantly to output. Ensuring geographical representation and industrial diversity. This approach ensures fairness and reduces subjective decision-making. The emphasis on verification using multiple sources—administrative records, GST registrations, MCA21 database, and industry associations—strengthens the reliability of the substitution process. Part -5 next one
Khushrajpatel
Khushrajpatel 3 महीने 4 दिन पहले
part-3 continuous Importance of a Dynamic Panel:- A major strength of the discussion paper is its emphasis on shifting from a “fixed factory panel” to a “dynamic panel.” Indian manufacturing has evolved significantly after 2011–12, which is the current base year for IIP. Sectors like pharmaceuticals, electronics, renewable energy equipment, food processing, and automobiles have grown sharply, whereas traditional industries like some textiles and low-value manufacturing have slowed down. A dynamic panel will allow the IIP to remain aligned with structural changes, thereby helping policymakers frame more accurate industrial policies. Additionally, a dynamic panel will also improve the granularity of industrial data at the sectoral level. For example, India's electronics manufacturing has witnessed large-scale reforms under PLI schemes. Without including new factories, the IIP underrepresents this growing sector. PART-4 next one
franklin thompson
franklin thompson 3 महीने 4 दिन पहले
Hi there everyone I read an article about India/gov onboarding iPhones https://www.reuters.com/sustainability/boards-policy-regulation/apple-resist-india-order-preload-state-run-app-political-outcry-builds-2025-12-02/ This is wrong. You need an app that functions as a gateway using geo locational dns and uses high and low level packet filtering Ie access location -> security -> bridge to network device -> security level 2 -> gateway to India gov ->++ Hope this helps, with the internet, you just need to release a virus that stops other viruses called a “probiotic” lol :( Good luck!
Khushrajpatel
Khushrajpatel 3 महीने 4 दिन पहले
part -2 continuously Challenges With the Current System:- The paper also explains the problems faced under the existing mechanism. Many factories fail to regularly submit monthly production returns due to staff shortage, lack of digital systems, or low awareness. Some “ghost factories” exist only on paper but have stopped production. Some units report single-digit production for months, which skews the index. Non-responding factories force the statistical agencies to use “imputation techniques,” which reduces the accuracy of the index. On the other hand, new factories that are producing at scale remain outside the sampling frame, resulting in under-reporting of actual industrial activity. Thus, the present static panel is unable to reflect dynamic changes in the manufacturing ecosystem. The discussion paper rightly emphasizes that without routine substitution, the credibility of the IIP as a national indicator will weaken. Part -3 next one
Khushrajpatel
Khushrajpatel 3 महीने 4 दिन पहले
part -2 continuously Challenges With the Current System:- The paper also explains the problems faced under the existing mechanism. Many factories fail to regularly submit monthly production returns due to staff shortage, lack of digital systems, or low awareness. Some “ghost factories” exist only on paper but have stopped production. Some units report single-digit production for months, which skews the index. Non-responding factories force the statistical agencies to use “imputation techniques,” which reduces the accuracy of the index. On the other hand, new factories that are producing at scale remain outside the sampling frame, resulting in under-reporting of actual industrial activity. Thus, the present static panel is unable to reflect dynamic changes in the manufacturing ecosystem. The discussion paper rightly emphasizes that without routine substitution, the credibility of the IIP as a national indicator will weaken. Part -3 next one
Khushrajpatel
Khushrajpatel 3 महीने 4 दिन पहले
respected sir madam, continuously part -1in part -2 Need for Substitution of Factories:- The composition of India’s industrial sector changes rapidly due to modernization, technological upgrades, shutdowns, and the emergence of new enterprises. Many factories listed in the old IIP panel may no longer remain operational or may significantly reduce their output. Meanwhile, thousands of new units may begin production and contribute greatly to the economy but remain outside the existing panel. Because IIP relies on a fixed set of reporting factories, non-updation leads to distortion of growth rates. The discussion paper correctly highlights that timely substitution is essential to ensure that: -Non-reporting or permanently closed factories are removed. -Newly active and large contributor factories are included. -Data gaps, delays, and biases are minimised. -The industrial structure represented in IIP reflects current realities.