The panel is expected to review the current system of price collection and suggest changes of its improvement, and decide on the computation methodology for the WPI and the PPI. File
| Photo Credit: Sushil Kumar Verma
The Centre on Thursday (January 2, 2025) announced the formation of an expert panel to revise the constituents of the country’s Wholesale Price Index (WPI) in light of the structural changes in the economy that have occurred between 2011-12, the current base year for the critical price gauge, and 2022-23 that would be the new base year.
The working group, to be steered by Niti Aayog member Ramesh Chand, would also examine the composition of, and the methodology for compilation of a new Producers’ Price Index or PPI, that has been approved by a technical advisory panel on Statistics of Prices and Cost of Living.
The group for revising the WPI and the PPI has been asked to submit its final report to the Office of the Economic Adviser in the Commerce and Industry Ministry within 18 months, effectively giving it a June 30, 2026 deadline.
As per the terms of reference of the 18-member panel that also includes some private sector economists, the group is expected to review the current system of price collection and suggest changes of its improvement, and decide on the computation methodology for the WPI and the PPI.
For the PPI, the panel has been asked to suggest further improvements in the compilation and presentation formats that are under consideration, and, more importantly, recommend a roadmap for India to switch over from the WPI to the PPI. At a broader level, it may also suggest any other improvements as may be necessary for enhancing the reliability of the two indices.
“The Chairman of the Working Group may co-opt experts/ representatives of other agencies, as may be considered necessary,” the Ministry said. Apart from Mr. Chand, the panel includes eight officials from the Ministries of Statistics, Finance, Petroleum and Natural Gas, Agriculture, and Consumer Affairs. A Reserve Bank of India (RBI) representative and the Chief Executive Officer of the Goods and Services Tax Network have also been roped in.
From the private sector, Crisil chief economist Dharmakirti Joshi, Bank of America Merill Lynch economist Indranil Sengupta, and Kotak Mahindra Asset Management managing director Nilesh Shah, have been named as members of the working group.
Two other non-official members in the panel are PM’s Economic Advisory Council member Shamika Ravi, and economist Surjit Bhalla.
Published – January 02, 2025 03:38 pm IST
