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<b>LETTERS:</b> Faulty IIP

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Business Standard New Delhi
Last Updated : Jan 29 2013 | 2:34 AM IST

It is clear (‘Aberration or warning?’, October 14) that the Index of Industrial Production is flawed. Your editorial has given some instances of this. In the past, others too have done the same. So, for instance, it is difficult to see how the consumer goods index is doing badly when the sales of consumer goods firms are doing well. The same can be said about other sub-parts of the index, such as capital goods.

But if the IIP is flawed, is it flawed only in one direction? That is, it is only flawed when it gives bad news but is all right when it gives good news, the good news that caused the markets to celebrate over the past one year.

Suchit Pandey, Gurgaon

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