The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, JANUARY 2, 2025
In a significant move aimed at aligning price indices with the evolving economic landscape, the government has constituted a Working Group under the leadership of NITI Aayog member Ramesh Chand to revise the base year of the Wholesale Price Index (WPI) from 2011-12 to 2022-23.
The 18-member panel, which includes representatives from key ministries, Reserve Bank of India, and leading economists, has been tasked with submitting its final report to the Office of the Economic Adviser within 18 months. Prominent members include RBI representatives, Finance Ministry officials, and notable non-official members such as Surjit Bhalla, Shamika Ravi, Dharmakirti Joshi, Nilesh Shah, and Indranil Sengupta.
The Working Group will review and update the commodity basket for both the WPI and the Producer Price Index (PPI), factoring in structural economic changes. It will also refine price collection mechanisms, computational methodologies, and the roadmap for transitioning from WPI to PPI. Additionally, the group will examine and potentially improve the linking factor methodology used in calculating indices.
The Chairman has the discretion to co-opt additional experts as necessary to enhance the panel’s efficacy.
