Govt Forms Expert Panel to Revise WPI Base Year and Develop New PPI.
National
On January 2, 2025, the Government of India (GOI) constituted an expert panel to review and revise the base year of the Wholesale Price Index (WPI) from 2011-12 to 2022-23. The panel is also tasked with developing a new Producer Price Index (PPI).
- The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry (MoC&I) issued the notification regarding the panel's formation.
- The expert group has been assigned the responsibility of presenting its final report to the Office of the Economic Adviser, MoC&I, by June 30, 2026.
- The Wholesale Price Index (WPI), introduced in 1942 with a base year of 1939, has undergone seven revisions, the latest being 2011-12. The Producer Price Index (PPI), widely used by G20 countries, tracks price changes at various production stages, from raw materials to finished goods.
Main Point :- (i) The panel, chaired by NITI Aayog member Ramesh Chand, comprises 18 additional members representing various ministries, public organizations, and private sectors.
(ii) The panel includes eight officials from key ministries such as Statistics and Programme Implementation (MoSPI), Finance (MoF), Petroleum and Natural Gas (MoP&NG), Agriculture and Farmers' Welfare (MoA&FW), and Consumer Affairs, Food and Public Distribution (MOCAF&PD), along with a representative from the Reserve Bank of India (RBI) and five non-official members from the private sector.
(iii) The panel has been tasked with suggesting enhancements to the price collection system, determining the computational methodology for both indices, improving the presentation formats of the Producer Price Index (PPI), and recommending additional measures to increase the accuracy and reliability of WPI and PPI data.
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