New Delhi, June 2: In a major step toward modernizing India’s inflation and economic data framework, the government is preparing to revise the base year of the Wholesale Price Index (WPI) from 2011-12 to 2022-23. Alongside this update, authorities are also set to introduce a Producer Price Index (PPI), which will provide a more comprehensive measure of price changes faced by producers across the economy.
The Department for Promotion of Industry and Internal Trade (DPIIT) is expected to provide further details during a media briefing on Tuesday, which will be addressed by Principal Economic Adviser Praveen Mahto.
Speaking on the transition, Ministry of Statistics and Programme Implementation (MoSPI) Secretary Saurabh Garg said that the government has already begun using WPI data based on the 2022-23 series for internal calculations. This approach has helped avoid revisions to the latest Index of Industrial Production (IIP) data and ensures greater consistency in economic reporting.
While the introduction of the Producer Price Index marks an important milestone, officials clarified that the shift from WPI to PPI will be gradual. The government intends to closely monitor the stability and reliability of the new index before considering its broader adoption in economic analysis and policymaking.
According to Garg, the difference between the current WPI and the proposed output-based PPI is expected to be limited, as the existing WPI methodology already captures many producer-level price movements. However, the PPI is expected to offer a more detailed and internationally aligned measure of inflation from the producers’ perspective.
The move follows the recent revision of the Index of Industrial Production (IIP) base year to 2022-23. MoSPI has already incorporated updated WPI deflators linked to the new base year while compiling industrial output data, signaling a broader overhaul of India’s statistical framework.
Earlier this year, the government announced a series of updates to key economic indicators, including the revision of the GDP base year to 2022-23, the Consumer Price Index (CPI) base year to 2024, and the IIP base year to 2022-23. These changes are part of a wider effort to ensure that India’s economic statistics better reflect current market realities and structural shifts in the economy.
Officials noted that work on revising the WPI series is progressing steadily. Until the updated index is formally released, the existing WPI series will continue to be used for inflation adjustments and other statistical purposes.
The planned launch of the Producer Price Index is expected to strengthen India’s economic data ecosystem by offering deeper insights into cost pressures faced by businesses, helping policymakers, economists, and industry stakeholders make more informed decisions.