India Launches Producer Price Index
Analysis based on 8 articles · First reported Jun 15, 2026 · Last updated Jun 15, 2026
The introduction of the Producer Price Index (PPI) by India is expected to provide a more accurate measure of price changes from producers' perspectives, which will enhance its suitability for use in National Accounts/GDP compilation and estimation of real value addition. This move aligns India's economic data measurement with global standards, potentially increasing investor confidence in the accuracy of India's economic indicators.
India's government has released Producer Price Index (PPI) data for goods and services for the first time, marking a significant shift in how price movements are measured. This new index will gradually replace the Wholesale Price Index (WPI) over the next five years, aligning India with practices adopted by advanced economies and recommendations from the International Monetary Fund. The PPI provides a clearer picture of price changes faced by producers, measuring both the prices producers receive for their products and the prices they pay for inputs. The revised base year for both WPI and PPI is 2022-23, covering 957 items. The first phase of Service PPI includes seven sectors like banking and telecom, with more services to be added later. This transition, following recommendations from a working group led by former India — NITI Aayog member Ramesh Chandra Sen, aims to improve GDP calculations and estimates of real economic growth.
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