# India's PPI reform half-made

> India's new price index faces gaps despite 50-year delay from WPI.
- Title: India's PPI reform half-made · Financialexpress | Shortify
- Summary: India's new price index faces gaps despite 50-year delay from WPI. India's producer price index (PPI) has gaps in collection, trial status, and services…
- Keywords: india, wpi, ppi, producer price index, wholesale price index, gdp, imf, gst e-invoicing, services economy, business, money, news
- Source: Financialexpress — https://financialexpress.com/opinion/a-reform-worth-making-half-made/4364328
- Author: FE Bureau
- Published: 2026-10-18T16:58:40+00:00
- Read time: 1 min
- Topics: india, wpi, ppi, producer price index, wholesale price index, gdp, imf, gst e-invoicing, services economy, business, money, news
## India replaces WPI with PPI
India published its first producer price index (PPI) and began retiring the wholesale price index (WPI) it has relied on since 1942.
## 50-year delay
India's WPI was first published on January 10, 1942, and the Office of the Economic Adviser has since found registers suggesting compilation as early as 1915.
## PPI vs WPI
A PPI measures what a producer actually receives at the factory gate, net of taxes and trade margins, and covers services which the WPI does not.
## Collection gaps
The government has not explained how it secured cooperation from Indian companies despite GST e-invoicing providing transaction-level B2B records.
## Trial index status
India's input PPI (IPPI) is labeled a 'trial index' with no criteria for graduation or date by which it is expected to become a full index.
## Services coverage
The new services PPI covers only seven sub-sectors: banking, securities transactions, insurance, pension fund management, railways, air passenger transport, and telecom.
## Five-year deadline
With the WPI due to be discontinued in five years, gaps in the PPI must be closed within five years or contracts will rely on an incomplete index.
## Why it matters
The WPI remains the reference point for indexation, cost escalation, and contract pricing across industry, determining cash flows and tariff revisions.
## What happens next
India must close gaps in PPI collection, trial status, and services coverage within five years to avoid contract issues.
## Key takeaway

India's producer price index (PPI) has gaps in collection, trial status, and services coverage that may take five years to fix.