India launches nationwide survey to update key economic indicators
What's the story
The Indian government has launched a nationwide survey to update its key economic indicators. The survey will update the Wholesale Price Index (WPI), introduce a new Producer Price Index (PPI), and revise the Index of Industrial Production (IIP) with a base year of 2022-23. The move is aimed at making inflation and industrial output measures more representative of today's manufacturing sector.
New metric
What is the new Producer Price Index (PPI)?
The Producer Price Index (PPI) is a new economic indicator that will track prices received by service providers or manufacturers before their goods reach the wholesale market. The Ministry of Commerce and Industry has said that data for this new series will be compiled retrospectively from April 2022. Meanwhile, the current WPI based on 2011-12 will continue until the transition is complete.
Survey execution
Who will conduct the survey?
The survey will be conducted by the Field Operations Division of the National Statistical Office, under the Collection of Statistics Act, 2008. As many as 26 statistics officers will head regional offices. They will be assisted by officials authorized to inspect GST invoices, e-way bills, balance sheets and other records to verify submissions. This drive will cover all states and union territories targeting organized manufacturing establishments engaged in various activities including manufacturing, repair work, gas and water supply, among others.
Compliance measures
What data will be collected?
Owners or managers of factories or establishments registered under laws such as the Factories Act, Companies Act, Shops and Commercial Establishments Act 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/union territory can be submitted. The Office of Economic Adviser in Department for Promotion of Industry and Internal Trade will process this data.
Digital interface
Why this survey is necessary?
Data submission will be facilitated through an online portal, but verification will be strict to ensure reliability. Arun Kumar Garodia, former chairman of the Engineering Export Promotion Council (EEPC), said that this update was necessary as the manufacturing sector has evolved significantly in the past decade. He added that without such an update, key economic indicators risk becoming outdated and this step should help India match international statistical standards.