{"id":1714,"date":"2025-01-04T11:35:53","date_gmt":"2025-01-04T06:05:53","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=1714"},"modified":"2025-01-12T16:12:50","modified_gmt":"2025-01-12T10:42:50","slug":"ramesh-chand-panel","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/ramesh-chand-panel\/","title":{"rendered":"Ramesh Chand Panel"},"content":{"rendered":"<h2><strong>About Ramesh Chand Panel:<\/strong><\/h2>\n<ul>\n<li>It was established <strong>to revise the base year of the Wholesale Price Index (WPI) from 2011-12 to 2022-23.<\/strong><\/li>\n<li>Among its <strong>key mandates<\/strong>, the panel will:\n<ul>\n<li><strong>Propose a revised commodity basket for the WPI and<\/strong> the <strong>Producer Price Index (PPI)<\/strong> with the base year 2022-23, considering structural changes in the economy.<\/li>\n<li><strong>Review the current system of price collection<\/strong> and recommend improvements.<\/li>\n<li>It will also <strong>decide on the computational methodology to be adopted for WPI<\/strong> and <strong>PPI<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li>The panel will have economists in the government, rating agencies, asset management companies, banks, and representatives from the government and the Reserve Bank of India.<\/li>\n<li>It has been asked to submit its <strong>final report<\/strong> to the Office of the Economic Adviser at the Department for Promotion of Industry and Internal Trade (DPIT) <strong>within 18 months.<\/strong><\/li>\n<\/ul>\n<p><strong>Wholesale Price Index (WPI) vs. Producer Price Index (PPI):<\/strong><\/p>\n<ul>\n<li><strong>WPI<\/strong> represents the <strong>price of goods at a wholesale stage,<\/strong> i.e. goods that are sold in bulk and traded between organisations instead of consumers.\n<ul>\n<li>It <strong>does not account for inflation at the level of the ordinary public<\/strong> because they do not buy products at wholesale prices.<\/li>\n<li>WPI <strong>excludes the service sector, <\/strong>which covers about 55% of GDP.<\/li>\n<li>WPI has an <strong>inbuilt bias due to double counting of the same product<\/strong> and doesn\u2019t include exports and imports.<\/li>\n<\/ul>\n<\/li>\n<li><strong>PPImeasures wholesale prices from the point of view of producers<\/strong> of goods and services by <strong>tracking prices at different stages of production<\/strong>.\n<ul>\n<li><strong>PPI<\/strong> is different from WPI in the way that it <strong>measures the average change in prices received by producers<\/strong> and <strong>excludes indirect taxes<\/strong>.<\/li>\n<li>It <strong>looks at inflation from the viewpoint of industry<\/strong> and business and measures price changes before consumers purchase final goods and services.<\/li>\n<li><strong>Weight of an item in WPI is based on net traded value, whereas in PPI weights are retrieved from Supply Use Tables<\/strong>.<\/li>\n<li><strong>PPI also includes services,<\/strong> while WPI only has goods.<\/li>\n<li><strong>PPI has replaced WPI in most countries<\/strong> as it is conceptually in line with the internationally agreed System of National Accounts (SNA) to compile measures of economic activity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q1<\/strong>: What is the Consumer Price Index (CPI)?<\/h3>\n<p>Consumer Price Index (CPI) inflation, tracks the change in retail prices of goods and services which households purchase for their daily consumption. CPI is calculated for a fixed basket of goods and services that may or may not be altered by the government from time to time. The change in the price index over a period of time is referred to as CPI-based inflation, or retail inflation. CPI is calculated as a percentage. It is a comparison of the general price level in the markets in a particular time period from a time frame in the past. This is known as the base year. CPI, therefore, is calculated by referring to a base year, which is a benchmark. Currently, the base year is 2012.<\/p>\n<p><strong>Source<\/strong>: <a href=\"https:\/\/www.financialexpress.com\/policy\/economy-panel-to-suggest-road-map-for-producer-price-index-3705945\/lite\/\" target=\"_blank\" rel=\"nofollow noopener\">FE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government recently announced the formation of an 18-member panel headed by NITI Aayog member Ramesh Chand to revise the base year of the Wholesale Price Index (WPI) and suggest a road map for switching over to the Producer Price Index (PPI).<\/p>\n","protected":false},"author":8,"featured_media":1715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[65,83,22,23],"class_list":{"0":"post-1714","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-articles","9":"tag-ramesh-chand-panel","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/1714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=1714"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/1714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/1715"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=1714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=1714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=1714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}