In a major overhaul of the way in which the government calculates a key metric of industrial growth, the statistics ministry is proposing to swap factories that have shut down with new ones as part of the pool of facilities it examines to compute the Index of Industrial Production (IIP).

In a discussion paper it floated on Tuesday, the Ministry of Statistics and Programme Implementation (MoSPI) said should a factory producing a certain good report zero production or if production data is not reported by a factory for three months in a row, a status check would be undertaken. Upon confirmation that the factory has either shut down permanently or started to make some other items, it would be removed from the sample and substituted with another.

“…in the current series the weight of the clo

See Full Page