Centre To Update Wholesale Price Index, Launch Producer-Focused Gauge In Major Overhaul Of Economic Indicators

(MENAFN- Live Mint) NEW DELHI: The government has launched a nationwide survey to update India's key economic indicators, including the Wholesale Price Index (WPI), introduce a Producer Price Index (PPI) for the first time, 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.

A producer price index typically tracks prices received by services providers or manufacturers, even before their goods reach the wholesale market.

The Ministry of Commerce and Industry, in an official order issued late Wednesday, said the exercise will begin this month. Data for the new series will be compiled retrospectively from April 2022, while the current WPI, based on 2011-12, will continue until the transition is complete.

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Under the Collection of Statistics Act, 2008 (as amended in 2017 and through the Jan Vishwas Act, 2023), the National Statistical Office's Field Operations Division (NSO-FOD) has been empowered to conduct the survey. Twenty-six Statistics Officers will lead regional offices, supported by officials authorized 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 and water supply, and cold storage,” it 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.

The Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade (DPIIT) will process and disseminate the data. 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.

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“Our manufacturing sector has evolved significantly in the past decade, and without such an update, key economic indicators risk becoming outdated. This step should help India match international statistical standards,” said Arun Kumar Garodia, immediate past chairman of the Engineering Export Promotion Council (EEPC) and managing director of Corona Steel Industry Pvt Ltd.

Data submission will be facilitated through an online portal, but verification will be strict to ensure reliability, underscoring the government's push for more accurate and timely economic statistics.

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