India to Adopt Producer Price Index (PPI) as GDP Deflator, Replacing WPI

29 July 2026National

The Ministry of Statistics and Programme Implementation (MoSPI) announced it will use the output Producer Price Index (PPI) as a deflator for quarterly and annual GDP estimates, replacing the Wholesale Price Index (WPI) where applicable. The PPI series was released by the Department for Promotion of Industry and Internal Trade (DPIIT) in June 2026. A GDP deflator converts nominal GDP into real GDP by adjusting for price changes. The revised GDP series also updates the base year to 2022-23 (from 2011-12) and adopts double deflation (separately adjusting output and input prices). In June 2026, WPI inflation was 9.87% and output PPI inflation was 9.57%. The new methodology takes effect with the April–June 2026-27 GDP estimates, while CPI continues for specific granular items.

Static GK

MoSPI releases: GDP, CPI and IIP data | WPI is released by: Office of the Economic Adviser, DPIIT | CPI is released by: NSO / MoSPI | New GDP base year: 2022-23 | GDP deflator = (Nominal GDP / Real GDP) x 100

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India (MoSPI) will use the output Producer Price Index (PPI) as its GDP deflator, replacing the WPI; the revised GDP series shifts the base year to 2022-23 and adopts double deflation. The PPI series was released by DPIIT in June 2026.

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