Q. Consider the following statements about the Wholesale Price Index in India:

1. The base year for the calculation of Wholesale Price Index is 2011-12
2. Manufacturing has a higher weightage than “Food Articles” in WIP

Which of the above statements is/are correct?
Answer: Both 1 & 2
Notes: Both are correct statements
The government has changed the base year for the wholesale price index (WPI) to 2011-12 from 2004-05. In the new WPI series, prices used for compilation do not include indirect taxes in order to remove the impact of fiscal policy. The weightage of primary articles is 22.62%, weightage of fuel and power is 13.15%, the weightage of manufactured products is 64.23%, the weightage of food articles is 24.38%.