India to Use Producer Price Index (PPI) for GDP Deflation

30 July 2026National

In July 2026, the Ministry of Statistics and Programme Implementation (MoSPI) announced plans to use the output Producer Price Index (PPI) as a deflator for quarterly and annual GDP estimates, replacing the Wholesale Price Index (WPI) wherever applicable. The PPI series was released by the Department for Promotion of Industry and Internal Trade (DPIIT) in June 2026. The revised GDP series has updated the base year to 2022-23 (from 2011-12) and adopted double deflation, which separately adjusts output and input prices. MoSPI plans to introduce the new PPI-based methodology with GDP estimates for the April-June quarter of 2026-27, while the CPI continues for specific granular items.

Static GK

A deflator converts nominal GDP to real GDP by removing the effect of price changes | WPI is released by the Office of the Economic Adviser, DPIIT | CPI is released by the NSO under MoSPI | New GDP base year: 2022-23

⚡ Quick Revision

MoSPI will use the output PPI (released by DPIIT) as the GDP deflator in place of the WPI, with the revised series using base year 2022-23 and double deflation.

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