India Overhauls Economic Statistics: New WPI, Producer Price Index and Revised GDP Series

India has carried out a major upgrade of its macroeconomic statistical framework. Following the launch of a new Gross Domestic Product (GDP) series with 2023-24 as the base year, a new Consumer Price Index (CPI) with 2024 as base, and a new Index of Industrial Production (IIP) with base 2022-23, the government has now introduced an updated Wholesale Price Index (WPI) and a new Producer Price Index (PPI).

The revamped WPI has an expanded commodity basket and updated weights and computation formula. Over time, the WPI is expected to be replaced by the PPI, aligning India with global best practices and International Monetary Fund (IMF) recommendations. The PPI will cover output, input and service prices, giving a more realistic picture of inflation in the economy.

The Department for Promotion of Industry and Internal Trade (DPIIT) has released an output producer price index (OPPI), a trial input producer price index (IPPI) and a service PPI covering seven services — banking, securities transactions, insurance, pension fund management, railways, air passenger transport and telecom. Service PPIs will be released quarterly. Importantly, having both output and input price indices helps solve the long-standing 'double deflation' problem in estimating real GDP.

For aspirants, this is an important economy topic. Remember the new base years (GDP 2023-24, CPI 2024, IIP 2022-23), the shift from WPI to PPI, the role of DPIIT, and the concept of double deflation — all of which improve the accuracy of India's national accounts.