New Consumer Price Index – Changes and Implications

New Consumer Price Index

Consumer Price Index Latest News

  • The Ministry of Statistics and Programme Implementation (MoSPI) has released a new India Consumer Price Index (CPI) series with 2024 as the base year, reporting retail inflation at 2.75% in January. 

Understanding the Consumer Price Index in India

  • The Consumer Price Index (CPI) is the primary measure of retail inflation in India. 
  • It tracks changes in the prices of goods and services consumed by households and is used by the Reserve Bank of India (RBI) to frame monetary policy under the inflation-targeting framework.
  • CPI reflects the cost of living and directly affects interest rates, wages, pensions, and government welfare schemes. 
  • It is based on a “basket” of goods and services that represents typical household consumption patterns.
  • Since consumption habits change over time due to income growth, technological shifts, and urbanisation, the CPI basket must be periodically revised. 
  • Without such revisions, the index may misrepresent actual inflation trends.

Key Features of the New CPI Series

  • Updated Base Year
    • The base year has been revised to 2024. A base year acts as a reference point against which price changes are measured. 
    • Updating it ensures that inflation calculations reflect contemporary consumption patterns rather than outdated ones.
  • Revised Consumption Basket
    • The new CPI includes goods and services that households currently consume and excludes obsolete items. 
    • For example, older items such as CDs and DVDs have been replaced with modern electronics such as headphones, earphones, and Bluetooth devices. 
    • This reflects the digital transformation of Indian households and makes inflation measurement more realistic.
  • Retail Inflation in January
    • According to the new CPI series, retail inflation stood at 2.75% in January. 
    • However, direct comparison with previous months under the old CPI series is statistically inappropriate due to differences in basket composition and methodology.

The Apples-to-Oranges Problem

  • One major issue raised by analysts is the comparability of inflation rates under the old and new series.
  • Under the old CPI, December inflation was recorded at 1.33%. Comparing that figure directly with January’s 2.75% under the new series would be misleading because:
    • Some goods have been added or removed.
    • Weightages assigned to categories have changed.
    • Data sources and price collection methods have been revised.
  • This is similar to comparing two different baskets of goods; the underlying components differ, so inflation outcomes may vary even if price trends remain stable.

The Back-Series Debate

  • To address comparability concerns, MoSPI has released a “back-series” of headline index numbers going back to 2013. 
  • However, experts caution that this back-series is largely mechanical. It applies linking factors to adjust old data, but does not reconstruct the old basket using new consumption patterns.
  • For example, December 2025 inflation under the new series would be 1.17%, compared to 1.33% under the old series. 
  • Over 2025, the average inflation rate remains broadly similar at around 2.2% under both series. 
  • Yet, economists argue that a more detailed back-series requires deeper methodological work, especially given changes in:
    • Item inclusion and exclusion
    • Market coverage
    • Data collection processes

Changes in the Weight of Food, Gold and Silver

  • Reduced Weight of Food
    • Food items now carry a lower weight in the CPI basket compared to the previous series. 
    • This reflects rising incomes and diversification of household expenditure towards services and non-food items.
    • A lower food weight could potentially reduce volatility in headline inflation, as food prices are typically more sensitive to monsoon conditions and supply shocks.
  • Revised Weight of Gold and Silver
    • In the old CPI, gold had a weight of 1.08% and silver 0.11%. 
    • In the new CPI, gold/diamond/platinum jewellery together account for 0.62%, while silver jewellery accounts for 0.31%. 
    • Although their combined weight remains important, gold’s individual weight has reduced.
    • Interestingly, global gold and silver prices saw sharp increases — gold inflation at 69% and silver at 97% during December 2025. 
  • If these were excluded, CPI inflation in December 2025 would have been just 0.26% instead of 1.33%. 
  • This shows how commodity price shocks can significantly influence headline inflation.

Implications for Monetary Policy

  • The new CPI series has several policy implications:
    • Improved Accuracy - It better reflects actual household spending patterns.
    • Reduced Food Volatility - Lower food weight may stabilise headline inflation.
    • Core Inflation Insight - With changed weights, underlying (core) inflation trends may appear softer.
    • Better Policy Calibration - RBI decisions on repo rates can be more aligned with real consumption dynamics.
  • However, transitional confusion and data interpretation challenges may persist until a detailed back-series is prepared.

Source: IE

[youtube url="https://www.youtube.com/watch?v=T3gWqdVUJyQ" width="560" height="315"]

Consumer Price Index FAQs

Q1: What is the base year of the new CPI series?

Ans: The new CPI series uses 2024 as its base year.

Q2: What was retail inflation in January under the new CPI?

Ans: Retail inflation stood at 2.75% in January.

Q3: Why cannot the new CPI be directly compared with the old series?

Ans: Because the consumption basket, weights, and methodology have changed.

Q4: How has the weight of gold changed in the new CPI?

Ans: Gold/diamond/platinum jewellery now accounts for 0.62% compared to 1.08% for gold earlier.

Q5: How did gold and silver prices affect inflation in December 2025?

Ans: Excluding gold and silver, inflation would have been 0.26% instead of 1.33%.

Gender Stereotype Handbook Revisited: Supreme Court Signals Shift in Judicial Training

Gender Stereotype Handbook

Gender Stereotype Handbook Latest News

  • The Supreme Court has signalled a shift in its approach to gender sensitivity by moving beyond the 2023 Handbook on Combating Gender Stereotypes, issued under former CJI D Y Chandrachud. 
  • Current Chief Justice Surya Kant described the handbook as overly academic and stressed the need for more practical, ground-level judicial training.
  • The observations arose during a suo motu hearing of an Allahabad High Court ruling that had controversially termed certain acts—such as grabbing a victim’s breasts and loosening her pyjama string—as mere “preparation” rather than an “attempt” to rape. 
  • The Supreme Court had earlier stayed the judgment and, later, formally set it aside. 
  • The bench directed the trial court to proceed with attempt-to-rape charges, underscoring the judiciary’s commitment to a more sensitive and legally sound interpretation in sexual assault cases.

Shift from Handbook to Institutional Training

  • During the hearing, the Supreme Court questioned the practical utility of the 2023 Handbook on Combating Gender Stereotypes. 
  • The bench observed that the handbook relied on “forensic meanings” — technical or clinical interpretations — which may not reflect survivors’ lived realities or common social understanding.
  • CJI Surya Kant described the document as “too Harvard-oriented,” suggesting it was overly theoretical and disconnected from India’s ground realities.
  • The Court noted that merely issuing a handbook to guide High Court judges “serves no purpose” if it does not translate into meaningful change. 
  • Instead of relying on advisory texts, the bench emphasised the need for structured institutional reform.

Role of the National Judicial Academy

  • The Court directed the National Judicial Academy (NJA), Bhopal, to constitute a committee of domain experts, academics, and lawyers to draft practical training guidelines
  • These will become part of the NJA’s curriculum for High Court judges.
  • Once finalised, judges will undergo batch-wise training focused on handling sexual assault cases with sensitivity and legal clarity.
  • Senior advocates have been engaged to assist in refining the new guidelines, ensuring they balance legal precision with survivor-centric sensitivity.

Inside the 2023 Gender Stereotypes Handbook

  • Released in August 2023, the 35-page Handbook on Combating Gender Stereotypes aimed to eliminate patriarchal language and biased reasoning from judicial decisions.
  • In his foreword, then CJI D.Y. Chandrachud emphasised that language shapes justice, warning that stereotypes distort the law’s application to women.

Reforming Courtroom Language

  • A major section of the handbook provided a glossary identifying “Incorrect” (stereotype-promoting) terms and suggesting “Preferred” alternatives.
  • Examples of Suggested Changes
    • “Adulteress” → “Woman who has engaged in sexual relations outside marriage”
    • “Eve teasing” → “Street sexual harassment”
    • “Child prostitute” → “Child who has been trafficked”
    • “Housewife” → “Homemaker”
    • Avoiding terms like “fallen woman” or “woman of easy virtue”
    • On “survivor” vs “victim,” it stated that both are valid but the individual’s preference should be respected.

Challenging Judicial Reasoning Patterns

  • Beyond vocabulary, the handbook sought to dismantle stereotypes in judicial thinking, particularly in sexual offence cases.
  • Inherent Characteristics - It rejected assumptions such as:
    • Women are overly emotional or illogical
    • All women want children
    • Young women cannot take major life decisions
  • The handbook clarified that gender does not determine rationality or autonomy.
  • Gender Roles - It challenged beliefs that:
    • Working women are negligent mothers
    • Women must be submissive
  • It reaffirmed constitutional guarantees of equality and dignity.

Approach to Sexual Violence Cases

  • The handbook addressed evidentiary misconceptions in rape trials:
    • Clothing, alcohol consumption, or lifestyle do not imply consent.
    • Lack of physical resistance does not equal consent.
    • Absence of injuries does not invalidate testimony.

Judicial Precedents Cited

  • The handbook grounded its guidance in Supreme Court rulings, including:
    • State of Punjab v. Gurmit Singh (1996) — Survivor testimony is inherently credible.
    • State of Jharkhand v. Shailendra Kumar Rai (2022) — Banned the “two-finger test”.

Source: IE | ToI

Gender Stereotype Handbook FAQs

Q1: Why is the Supreme Court revisiting the gender stereotype handbook?

Ans: The Court believes the gender stereotype handbook is overly theoretical and seeks practical judicial training to ensure sensitivity in sexual assault cases.

Q2: What was the purpose of the gender stereotype handbook?

Ans: The gender stereotype handbook aimed to eliminate patriarchal language and biased reasoning in court judgments, especially in sexual offence trials.

Q3: What shift has the Court proposed instead of relying solely on the handbook?

Ans: The Court directed the National Judicial Academy to design structured training modules to institutionalise gender-sensitive judicial practices beyond the gender stereotype handbook.

Q4: What controversial case triggered this review?

Ans: The review followed criticism of an Allahabad High Court ruling that termed certain acts as “preparation” rather than “attempt” to rape.

Q5: How does the shift affect judicial reform?

Ans: The move strengthens institutional training, making gender sensitivity a structured learning process rather than relying exclusively on the gender stereotype handbook.

India–Bangladesh Relations After BNP Victory: Key Challenges and Opportunities

India–Bangladesh Relations

India–Bangladesh Relations Latest News

  • The Bangladesh Nationalist Party (BNP), led by Tarique Rahman, secured a decisive victory in the recent elections, emerging on course for a two-thirds majority in the 300-member Parliament. 
  • The polls, the first since Sheikh Hasina’s ouster in August 2024, also saw a significant rise in seats for the Jamaat-e-Islami.
  • Prime Minister Narendra Modi congratulated Rahman on his “decisive victory.” 
  • The outcome marks a turning point for India–Bangladesh relations, which have faced uncertainty since Hasina’s removal, and will shape the trajectory of bilateral ties in the coming years.

India and the BNP: A Complex Political Legacy

  • India’s engagement with the Bangladesh Nationalist Party (BNP) dates back to its founding in 1978 by General Ziaur Rahman. 
  • After his assassination, Khaleda Zia led the party for decades, shaping its ideology. 
  • Tarique Rahman assumed leadership after her death and returned to Bangladesh following 17 years in self-exile.

Strained Ties During 2001–2006

  • Relations between India and Bangladesh were tense during the BNP-Jamaat coalition government (2001–2006). 
  • India raised concerns over insurgent and terror groups operating from Bangladeshi soil, allegedly with protection from Jamaat leaders, posing security challenges for India’s Northeast.
  • When Sheikh Hasina returned to power in 2008, her government launched a crackdown on insurgent groups, strengthening counter-terror cooperation with India. 
  • While New Delhi welcomed the improved security environment, Hasina also used anti-terror measures to target political opponents, including BNP and Jamaat leaders.

Post-Hasina Political Realignment

  • Following Hasina’s removal amid protests in 2024, the political landscape shifted rapidly. 
  • With the Awami League barred from contesting and Hasina in India, the BNP and Jamaat-e-Islami have emerged as dominant forces in Bangladesh’s current political environment.

India’s Diplomatic Pivot After BNP’s Victory

  • PM Modi quickly congratulated Tarique Rahman on his victory, even before official results were declared. 
  • The prompt message signalled India’s readiness to engage constructively with the incoming BNP government.
  • India had earlier extended diplomatic outreach after Khaleda Zia’s death, with EAM S. Jaishankar visiting Dhaka in December to convey condolences—helping stabilise bilateral ties.

Conciliatory Tone from BNP

  • During the campaign and after his return from exile, Rahman avoided anti-India rhetoric and adopted an inclusive tone, emphasising safety and unity across religious communities. 
  • This moderation has been positively received in both Delhi and Dhaka.
  • The BNP’s manifesto outlines a foreign policy centred on “Bangladesh Before All” and stresses equality and self-dignity in external relations—phrased as “Friend Yes, Master No,” an indirect assertion of balanced ties with India.
  • The BNP manifesto also emphasises non-interference in internal matters—interpreted as a signal of zero tolerance for anti-India activities within Bangladesh, while also safeguarding its sovereignty.

Jamaat’s Position and Regional Focus

  • Jamaat-e-Islami has similarly adopted conciliatory language, advocating peaceful and cooperative relations with neighbouring countries, including India. 
  • Notably, neither party’s manifesto mentions Pakistan, despite recent diplomatic engagement during the interim government.
  • However, both BNP and Jamaat stress strengthening ties with the “Muslim world,” signalling a broader strategic orientation alongside regional diplomacy.

Key Challenges for India in the Post-Hasina Era

  • The Hasina Extradition Question - Sheikh Hasina’s continued presence in India is politically sensitive. The BNP leadership may face pressure, especially from Jamaat, to seek her extradition and prevent politically provocative statements from Indian soil.
  • Preserving Economic Interdependence - Bangladesh is India’s largest trading partner in South Asia, with strong ties in textiles, energy, and other sectors. Sustaining stable trade relations is vital for economic and political stability on both sides.
  • Preventing Security Deterioration - India remains concerned about any resurgence of anti-India insurgent or extremist activity reminiscent of earlier BNP tenures. Maintaining security cooperation is a priority, with communication channels open even with Jamaat leaders.
  • Connectivity and Development Projects - Delhi seeks continuity in infrastructure and connectivity projects linking Northeast India to Bangladesh. However, anti-India sentiment in Bangladesh requires sensitive handling of these initiatives.
  • Strengthening People-to-People Ties - Bangladeshis frequently travel to India for healthcare and tourism. Expanding long-term and multiple-entry visa systems and improving service infrastructure can deepen goodwill.
  • Managing Migration Sensitively - Economic migration from Bangladesh remains politically charged in several Indian states. The issue requires cooperative, non-confrontational management to avoid bilateral strain.
  • Preventing Extremist and Anti-Minority Trends - India is wary of any extremist or anti-minority shift in Bangladesh. Ultimately, safeguarding pluralism depends on domestic leadership in Bangladesh, beyond external statements of concern.
  • Avoiding Strategic Realignment - Strong bilateral cooperation can help prevent Bangladesh from drifting towards Pakistan or China, preserving regional stability.

Source: IE | TH | MC

[youtube url="https://www.youtube.com/watch?v=PheV2Dmk7gY" width="560" height="315"]

India–Bangladesh Relations FAQs

Q1: Why is BNP’s victory significant for India–Bangladesh relations?

Ans: BNP’s victory marks a shift from the Hasina era, requiring recalibration of India–Bangladesh relations amid security concerns, extradition sensitivities, and evolving geopolitical alignments in South Asia.

Q2: How did India–Bangladesh relations differ under Hasina and BNP?

Ans: Under Hasina, India–Bangladesh relations strengthened through counter-terror cooperation, while earlier BNP tenures saw tensions over insurgent groups allegedly operating from Bangladeshi territory.

Q3: What economic factors influence India–Bangladesh relations?

Ans: Bangladesh is India’s largest trading partner in South Asia, making trade, connectivity, textiles, and energy cooperation central pillars of stable India–Bangladesh relations.

Q4: Why is Hasina’s presence in India politically sensitive?

Ans: Hasina’s presence could create diplomatic friction, as BNP may face domestic pressure to seek extradition, complicating India–Bangladesh relations in the post-election environment.

Q5: How can India prevent strategic realignment in Bangladesh?

Ans: Sustained engagement, economic cooperation, security collaboration, and respectful diplomacy can help stabilise India–Bangladesh relations and prevent drift towards Pakistan or China.

Industrial Relations Code (Amendment) Bill 2026 – Ensuring Legal Continuity Amid Political Contestation

Industrial Relations Code (Amendment) Bill 2026

Industrial Relations Code (Amendment) Bill 2026 Latest News

  • Recently, the Lok Sabha passed the Industrial Relations Code (Amendment) Bill 2026, aimed at preventing potential legal confusion regarding the repeal of older labour laws replaced by the Industrial Relations Code, 2020
  • The amendment seeks to reinforce legal certainty around the repeal and continuity provisions embedded in the Code.
  • The debate once again brought the larger issue of labour reforms vs. labour rights to the forefront — a recurring theme in contemporary Indian polity and governance.

Background

  • The Industrial Relations Code, 2020 is one of the four Labour Codes enacted to consolidate and rationalise India’s labour laws.
  • It subsumed three major legislations:
    • The Trade Unions Act, 1926 (dealt with trade union recognition)
    • The Industrial Employment (Standing Orders) Act, 1946 (conditions of employment)
    • The Industrial Disputes Act, 1947 (industrial dispute resolution)
  • The objective was to streamline labour regulations under a unified framework and promote ease of doing business (EoDB) while protecting worker rights.

Why the Amendment?

  • Issue of repeal and legal clarity:
    • Section 104 of the 2020 Code already provides for repeal of the above Acts. However, concerns emerged that there could be future legal challenges claiming that repeal power was improperly delegated to the executive.
    • Confusion may arise over whether repeal occurred automatically or via government notification.
  • The 2026 amendment:
    • It clarifies that repeal occurred by operation of Section 104 itself.
    • Reinforces savings provisions ensuring continuity of actions taken under old laws.
    • Prevents “future unwarranted complications.”
  • In essence: This is a legal housekeeping exercise, but one with constitutional implications relating to delegated legislation and legislative competence.

Government’s Position

  • The Union Labour Minister defended the amendment and the broader labour codes as reforms for labour welfare.
  • Key claims: These
    • Guarantee of minimum wages
    • Mandatory issuance of appointment letters
    • Uniform wages irrespective of gender (equal pay for equal work)
    • Greater transparency and formalisation of labour relations
    • Commitment to balancing worker welfare and industrial growth
  • The government framed the reform as a historic structural change aimed at protecting labourers while enhancing economic efficiency.

Opposition’s Criticism

  • Opposition parties raised sharp concerns calling reforms as anti-labour.
  • Major objections:
    • The Code allegedly enables “ease of firing” without “ease of hiring.”
    • This results in weakening of job security, potential increase in working hours, favouring corporates over workers.
    • Retrospective amendment reflects complete failure of government, as this repealing of the old Act should have been done before the new law was passed.
  • The Opposition also linked labour unrest and strike calls to dissatisfaction with the government’s approach.

Challenges and Way Forward

  • Trust deficit: Persistent suspicion among trade unions and opposition parties. Structured dialogue with trade unions.
  • Implementation gap: Ensuring uniform enforcement across states. Transparent rule-making at state level.
  • Balancing act: Promoting investment while protecting labour rights. Clear communication on safeguards against arbitrary termination. Strengthening labour inspection and compliance systems.
  • Judicial scrutiny: Possibility of constitutional challenges. Judiciary must balance labour rights and EoDB.
  • Industrial unrest: Strikes and labour mobilisation. Periodic review mechanisms to assess impact on employment and industrial relations. A reform of this scale must be both economically rational and socially sensitive.

Conclusion

  • The Industrial Relations Code (Amendment) Bill 2026 may appear technical, but it underscores a larger debate: How should India modernise its labour regime in a fast-changing economy?
  • The amendment primarily seeks to eliminate legal ambiguity regarding repeal of older labour laws. 
  • However, the political contestation around it reveals deeper anxieties about worker protections, job security, and the balance between capital and labour.
  • For a country aspiring to become a global manufacturing hub, labour reform is inevitable. 
  • The real test lies not in legislative consolidation alone, but in ensuring that reform translates into industrial harmony, social justice, and inclusive growth.

Source: TH | ToI

Industrial Relations Code (Amendment) Bill 2026 FAQs

Q1: What is the need for the Industrial Relations Code (Amendment) Bill 2026?

Ans: The amendment is introduced to ensure legal certainty against possible future judicial challenges.

Q2: How the Industrial Relations Code, 2020 seeks to balance ease of doing business with labour welfare?

Ans: The Code consolidates labour laws to streamline industrial relations while mandating minimum wages, etc.

Q3: Why has the Industrial Relations Code faced criticism from trade unions and opposition parties?

Ans: Critics argue that the Code prioritises “ease of firing” over job security.

Q4: What is the significance of savings clauses in legislative reforms such as the Industrial Relations Code?

Ans: Savings clauses ensure continuity of rights, liabilities, and actions taken under repealed laws.

Q5: What are the broader economic and social implications of labour code reforms in India?

Ans: They aim to formalise employment and attract investment, but their success depends on maintaining industrial harmony.

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