IIP’s early release may undermine the quality of data below: Experts – Economic News

In order to reduce the time interval in publishing the data on the Industrial Production Index (IIP), the Ministry of Statistics and Implementation of the Program (MOSPI) has now advanced the launch of the monthly printing. Experts say that the speed of data release has been very necessary, but it warns that, in turn, this can affect the quality of the data, unless remedial measures are taken.

According to the Ministry’s release calendar for 2025-26, the IIP figure for any month (say April) will be published on the 28th of the following month (MAI), compared to the current data release on 12 of the month after (June). This would reduce the time time of IIP data to about 30 days from 42 days at present.

However, data quality is likely to be successful, and subsequent reviews can be of a higher degree, say specialists. Pronab Sen, the former statisticist of India, explains that IIP is an estimate based on a fixed number of companies, which presents its production data to the Government, in a established chronology.

“If you set a deadline for companies to present their data, then normally so far, the Government would receive about 40% of the data, based on which the IIP will be launched. But now, if you reduce the interruption date, only 30% of the data will come, ”he explained.

Mospi mentioned on its site that the National Statistical Office, the Agency compileting IIP, “expects to have at least 60% response in terms of production to release” rapid estimation “(first printing) and 80% response at the time respectively the final review of the IIP. “

“The data would be probably more valid now, because your discount date will be reduced. So reviews can be bigger. Regardless, IIP is a high frequency data, the better it comes out the better, ”said Sen.

For the perspective, the IIP data for September 2024, when they were first launched in November, showed a growth rate of 3.1% in terms from year to year, but were smaller to 2.2% in the subsequent months.

PC Mohanan, former interim president, the National Statistical Commission, said: “There is the possibility that the quality of the data can suffer from this, and the reviews will be drastic. However, I feel that Mospii (the Ministry of Statistics and the implementation of the program) would have made due diligence before advancing the date. You may have talked to companies to provide their data before the due date. “

According to MOSPI, the IIP series 2011-12 comprises 839 articles. Statistically, among the three sectors – “Mingin” are 29 articles, “production” – 809 articles and “electricity”, only one. The ministry collects data from 14 source agencies to compile the IIP. About 50-55% of the IIP data come from the basic data of the sector, compiled by the Economic Counselor of the Ministry of Commerce.

TCA Anant, former secretary, Mospi does not expect the quality of the data to be compromised just as the majority of the IIP is based on the basic data of the sector. “The indicators of the basic sector come from the same sources as IIP, which comes with a delay of 30 days,” said Anant.