New IIP will track growth of MSME

The government is expected to come out soon with a separate index to track growth of the Micro, Small and Medium Enterprises (MSME), sharpening focus on the unorganised segment that contributes substantially to the country's economy.

India's Chief Statistician TCA Anant said the existing Index of Industrial Production (IIP) data covers only big industrial segments.

"A lot of industry units, which employ less than 10 workers, do not get covered under the current survey. But such industries are a major component of our manufacturing sector, with a big share in overall production and exports of the country....So MSME ministry is thinking about releasing a new index to capture such industries," he told reporters here.

Anant said a new methodology would be required to cover such a segment but declined to give a specific time-frame by when the new index for MSME would be out.

He said the new series of IIP, which has 2004-05 as the base year, has left MSME out of the index. Other 14 source agencies, which were part of the old series, have been included in the new one as well.

"As for the MSME segment, a separate index will be developed. The sector is very important. The time-frame and other details will be decided later," he said.

MSME sector is the second largest employers in the country after the agriculture sector. As many as 60 million people are employed in the sector, which contribute to 8% of India's Gross Domestic Product, and 40% of exports.