Centre to revise WPI, IIP base year and launch new Producer Price Index
Nationwide survey to revise economic indicators and align with global standards
New Delhi: The Centre announced that a nationwide survey will be done to update the country’s Wholesale Price Index (WPI), introduce a Producer Price Index (PPI), and revise the Index of Industrial Production (IIP) to the 2022-23 base year.
The move aims to make inflation and industrial output measures more representative of today’s manufacturing sector.
The WPI tracks price changes of goods at the wholesale level, focussing on bulk transactions between businesses. The current base year, 2011-12, is outdated due to significant economic changes over the past decade.
PPI tracks prices received by service providers or manufacturers before their goods reach the wholesale market. IIP measures industrial output in sectors like manufacturing, mining, and electricity. Revision of its base year will ensure it reflects current industrial activity, addressing outdated production patterns in the 2011-12 base year.
The Ministry of Commerce and Industry announced that the exercise will start in the month of August, and data for the new series will be compiled from April 2022.
As the manufacturing sector has evolved significantly in the past decade, key economic indicators may become outdated without an update. Analysts say that this step will help India align with international statistical standards.
The National Statistical Office’s Field Operations Division is authorised to survey the Collection of Statistics Act. As many as 26 Statistics Officers will lead regional offices, supported by officials authorised to inspect GST invoices, e-way bills, balance sheets, and other records to verify submissions.
“The drive will cover all states and union territories, targeting organised manufacturing establishments engaged in activities such as manufacturing, repair, gas, water supply, and cold storage,” an official release said.
Owners or managers of factories or establishments registered under laws such as the Factories Act, Companies Act, Shops and Commercial Establishments Act, and other statutory bodies can be asked to provide data. If separate details for each unit are unavailable, combined information for all units under the same management in a state or union territory can be submitted.
Statistics Officers can give respondents up to a month, or a period deemed suitable, to submit information, including via an online portal. Enforcement provisions include adjudicating officers who can impose penalties for non-compliance, and an appellate authority for grievance redressal. The data will be processed by the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade (DPIIT).
