More Stories

Informist, Tuesday, Jun. 2, 2026

 

--DPIIT official: To discontinue WPI data after 5 yrs, only release PPI 

--DPIIT official: To cover 60% of services in PPI by end FY27

 

NEW DELHI - The government will do away with the WPI 5 years from now and replace it completely with the output Producer Price Index, officials from the Department for Promotion of Industry and Internal Trade said Tuesday.

 

The department will release the revised WPI and new Producer Price Indices on Jun. 15. The new WPI series will use the financial year 2022-23 (Apr-Mar) as the base year, replacing FY12. The Producer Price Indices will also have FY23 as the base year.

WPI inflation rose to a 42-month high of 8.30% in April, driven by a sharp jump in fuel and power inflation caused by the war in West Asia. The revised WPI and Producer Price Indices will help to provide a more accurate picture of factory-gate prices in the country. 

The department will also release the Producer Price Indices--the Output Producer Price Index, Input Producer Price Index, and Services Producer Price Index. The services Producer Price Index will cover seven services--banking, securities transactions, management of pension funds, insurance, railways, air (passenger), and telecom--for the quarter ended March.

 

"Considering the wide usage of WPI in price escalation clauses, this index will be released for five years from the date of release of the revised series along with PPI and will be discontinued thereafter," the department said in a release. "This would give sufficient time to users to switch from WPI to PPI." The transition from WPI to PPI will be in alignment with practices adopted by advanced economies and the recommendations of the International Monetary Fund.

 

"Availability of both the Output PPI (Producer Price Index) and Input PPI gives a better understanding of the price movements of output items vis-s-vis input items being used in an industry. It also explains how inflation experienced by producers on input items are passed through the output being produced," according to the department's release.

 

The industry department will release the back series for WPI and output Producer Price Index from April 2023 to April 2026 on Jun. 15. The trial input Producer Price Index, which is being compiled only for the manufacturing sector, will be published on an experimental basis from March 2026 onwards, it said. "This would enable the Department to examine the data quality and also receive feedback of stakeholders and users."

 

The services Producer Price Index will be compiled on a quarterly basis. The department will release the services index for the March quarter on Jun. 15, along with the back series from Apr-Jun of FY24 to Oct-Dec FY26.

 

The services Producer Price Indices will be compiled for seven services in the first phase based on the availability of data from administrative sources and agencies. "By end of this fiscal year, we'll be coming out with PPI for other services and I am sure that we'll be covering at least 60% of these services," Praveen Mahto, principal economic adviser in the industry department, told reporters.

 

While the March quarter services Producer Price Index will be released this month, the department will most likely release the June quarter data in August, Mahto said. "Those timelines are being finalised in consultation with the statistics ministry because they release the GDP numbers," Mahto said. "They would like us to release (services Producer Price Index) at least a week prior to their release date." 

 

On Monday, Ministry of Statistics and Programme Implementation Secretary Saurabh Garg said the ministry will study the stability of the output Producer Price Index before replacing the WPI in the GDP and national accounts data. The statistics ministry will use the WPI for the time being for national accounts data, and switch to output Producer Price Index after seeing its stability and resilience.  End

 

Reported by Shubham Rana

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.