Industrial Production Index

Industrial Production Index (IPI) is one of the important Economic indexes. It measures the change in output in manufacturing, mining, and construction, etc in a given period with respect to the volume of production with a base period.

A higher than expected reading should be taken as positive or bullish for the Currency of a particular country. Lower than expected reading is negative or bearish for the currency.

E.g. If Industrial Production is stronger than forecast then Indian Currency(INR) will gain against other currencies like USD, EUR, GBP, etc. or vice versa.

Industrial Production Index (IPI) is one of the basic and short terms Economic index. It indicates how the industrial sector in the country is progressing. IPI measures the production in the Indian industrial sectors keeping a fixed Base Year. Currently, India uses the Base Year as 2004-05. The base year is also known as a reference point.

Roughly about 15 different industries submit their production data to the ministry. They collate the data and releases it as an index number.

Indicators That Impact India Stock Market

Industrial Production Index (IPI) Vs Country’s Economy and Markets

If the IPI data is positive it indicates very good industrial environment.  it’s also positive for the country’s economy and markets.

On the other hand, if the IPI data is negative it indicates a lethargic industrial environment. It is a negative sign for the country’s economy and markets.