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Which of the following are High Frequency Indicators of the Indian economy? 1. Power Consumption 2. IIP General Index 3. 10-year G-sec yield Select the correct answer using the code below. (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3
Explanation
High-frequency indicators (HFIs) are real-time or near real-time data points used to monitor economic activity before official quarterly GDP figures are released. Power consumption is explicitly listed as a high-frequency indicator in the Economic Survey 2024-25 [1]. The Index of Industrial Production (IIP) General Index is a critical monthly indicator used for nowcasting quarterly GDP and is officially categorized as one of the eighty key HFIs by the Ministry of Finance [2][3]. Financial market indicators, such as the 10-year G-sec yield, are also considered high-frequency data as they provide timely insights into interest rate outlooks, monetary policy stance, and overall economic sentiment. These indicators collectively allow policymakers to adopt an 'Agile' approach by tracking the economy's momentum through monthly, weekly, or daily data points [2]. Therefore, all three listed items are recognized high-frequency indicators of the Indian economy.
Sources
- [1] https://www.indiabudget.gov.in/economicsurvey/doc/stat/tab9.1.pdf
- [2] https://dea.gov.in/files/monthly_economic_report_documents/Dec_mer2021_compressed.pdf
- [3] https://www.mospi.gov.in/sites/default/files/iip/Report_of_WG_on_IIP.pdf