The 1980-81 series of all-India IIP may be revised by shifting its base to 1993-94;
On account of non-availability of item-wise monthly production data for small-scale sector, the selection of item basket may be based only on the detailed results of ASI 1993-94. At least the 18 items of small scale sector included in the 1980-81 series may be included in the new series;
The item basket for the new series should account for nearly 80 per cent of the total output for the manufacturing sector. However, the criteria may be used with certain flexibility. The criteria may be relaxed, if necessary, to ensure that the selected items in all the 2-digit industry groups captured at least 60 per cent of the value of output of the particular group. The over-riding criteria for finalisation of item basket would be the regular flow of monthly production data from the source agencies;
For allocation of weights, gross value of output (GVO) may be used uniformly for sectoral (1-digit level of NIC) to the item level. This will be a significant departure from the practice of using gross value added (GVA) for the preparation of weighting diagrams by the CSO and the States;
The weighting diagram of the revised series should take into account the total production of both the registered and un-registered manufacturing sectors;
The revised series would follow the National Industrial Classification (NIC) 1987.
The above-mentioned recommendations of the TAC were adopted while revising the 1980-81 series except for the recommendation on using of GVO instead of GVA as a criterion for allocation of weights in the compilation of the revised series of IIP. This was deliberated in different forums including a Special Committee and it was decided that the GVA should be used for allocation of weights for the sake of continuity, consistency, the international practices and the UN recommendations on the subject.