Index of Industrial Production (IIP)
The Index of Industrial Production (IIP) is a way to figure out how well different parts of a country's industrial economy are doing. It keeps track of how the amount of goods and services made in businesses like mining, manufacturing, and electricity generation changes over time. The IIP gives us important information about the health and growth of the industry sector, which is a key part of any country's economy.
About 15 different businesses send the ministry information about their production. The ministry then puts the information together and gives it out as an index number. If the IIP goes up, it means that the business environment is healthy because production is going up. This is good for the economy and markets. If the IIP goes down, it means that production is slowing down, which is bad for the business and markets.
When the IIP number goes down, it puts pressure on the RBI to lower interest rates. This helps industry credit by making loans cheaper.
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Table of Contents : Market Movers: Exploring Key Events and Their Influence on Markets 1. Exploring Key Events and Trends 2. Monetary Policy(Tool Through Which Controls the Money Supply) 3. Inflation(the purchasing power of money) 4. Index of Industrial Production (IIP) 5. Purchasing Managers Index (PMI) 6. Budget - an Event of Ministry of Finance |
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