Govt to phase out WPI, launch new Producer Price Index in 5 years
India’s government will phase out the Wholesale Price Index (WPI) over five years and introduce a new Producer Price Index (PPI) covering output, input, and services prices, aligning with global best practices. The revised WPI series with a 2022-23 base year and new PPI indices will launch on June 15, including expanded coverage of energy sources like solar, wind, and nuclear electricity.
India’s Commerce and Industry Ministry announced plans to phase out the Wholesale Price Index (WPI) and introduce a comprehensive Producer Price Index (PPI) within five years. The transition aims to provide a more accurate reflection of inflation trends by incorporating output, input, and service prices. Praveen Mahto, Principal Economic Adviser, confirmed the Department for Promotion of Industry and Internal Trade (DPIIT) will release a revised WPI series with a 2022-23 base year on June 15, replacing the existing 2011-12 series. This new series will include 957 items, up from 697, with added energy sources like solar and wind under the electricity group and nuclear electricity included for the first time. Alongside the WPI revision, DPIIT will launch three PPI indices: Output PPI, Trial Input PPI (for manufacturing), and Service PPI covering seven sectors—banking, securities, insurance, pension funds, railways, air passenger transport, and telecom. The Service PPI will be released quarterly, while WPI and Output PPI will be monthly. The Trial Input PPI will begin as an experimental monthly publication from March 2026. The government stated that WPI will remain available for five years post-launch to allow users time to transition to PPI, which aligns with recommendations from the International Monetary Fund (IMF). The new indices will provide clearer insights into price movements, including how input costs affect output prices. Dilip Kumar Sinha, Deputy Director General in the Office of Economic Advisor, noted that crude petroleum and natural gas have been reclassified from primary articles to fuel and power for better alignment. Both WPI and PPI will be compiled using basic prices (excluding taxes and trade margins), except for Input PPI, which uses purchaser’s prices. The DPIIT will release provisional data for May 2026, along with a back series from April 2023 to April 2026. Service PPI data will cover Q4 of 2025-26 with a back series from Q1 of 2023-24 to Q3 of 2025-26. The phased approach ensures stakeholders can adapt while maintaining continuity in economic monitoring.
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