Know why mobile phones will find prominent place in the new IIP series

The growth story of mobile phones in India is on the upsurge. And now mobile phones, which have almost become the first consumer electronic item of purchase for Indians, will find a prominent place in the new series of Index of Industrial Production (IIP, an official privy to the development told The Economic Times.

The official further added that as part of large-scale changes in consumer purchases of durables in a comprehensive revamp of the IIP, mobile phones and accessories will be pulled out as a separate category from telephone instruments.

If we believe the report, the Central Statistics Office (CSO) is expected to roll out a new series of IIP with effect from April 2016. Under the revised IIP, LED and LCD television sets will be placed in special categories instead of the existing classification called colour TV sets, said the official.

Besides televions sets, laptops, notebooks and netbooks are likely to be place under separate category as compared to the present electronics category called 'computers'.

Revealing that almost 100 new products have been added in the IIP basket, the official said, "A lot of changes are happening in the electronics segment and we have made new categories besides removing obsolete items form the index."

The changes are part of the periodic rejig in the IIP basket as part of the base year revision exercise for the index. The current IIP has a base year of 2004-05, which does not capture the vast changes in usage and the corresponding changes in the industrial set up to deliver those goods.

Given the booming demand, mobile phones call for a separate category in the industrial index. India is the world's fastest growing smartphone market and, as per research firm IDC, of the 59.4 million units shipped in the country in the quarter ended June, 26.5 million were smartphones.
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