The Economic Times

PPI vs WPI: What is Producer Price Index and why will it replace Wholesale Price Index in India?

India is phasing out the Wholesale Price Index for a new Producer Price Index. This shift aims to capture prices closer to the factory gate. Both indices will run in parallel for five years to allow business adjustments. Contracts currently referencing WPI will need recalibration during this transition. The government seeks to align with international practices and improve economic data.