UPPSC 2021 Prelims Q3: Which of the following Institution/Office bring out the

Q: What is the answer to UPPSC 2021 Prelims Q3?

B. Correct — B, the Ministry of Commerce and Industry. India's Wholesale Price Index is compiled and released by the Office of the Economic Adviser (OEA) in the Department for Promotion of Industry and Internal Trade (DPIIT), which is part of the Ministry of Commerce and Industry. The all-commodities WPI (current base year 2011-12) is put out on a monthly basis and is the headline measure of wholesale-level price change.

UPPSC 2021 Prelims GS Paper-I · Question 3 of 150

Verified against the official question paper. Answer as per the official UPPSC answer key.

Which of the following Institution/Office bring out the Wholesale Price Index (WPI) data in India ?

(a)The Reserve Bank of India
(b)The Ministry of Commerce and Industry
(c)The Ministry of Finance
(d)The Ministry of Consumer Affairs, Food and Public Distribution

Answer

Why

Correct — B, the Ministry of Commerce and Industry. India's Wholesale Price Index is compiled and released by the Office of the Economic Adviser (OEA) in the Department for Promotion of Industry and Internal Trade (DPIIT), which is part of the Ministry of Commerce and Industry. The all-commodities WPI (current base year 2011-12) is put out on a monthly basis and is the headline measure of wholesale-level price change.

Why the others are wrong

(a)The Reserve Bank of India — The RBI uses inflation data for monetary policy but does not compile the WPI; since 2016 its statutory inflation target is anchored to the Consumer Price Index (CPI), not the WPI.
(c)The Ministry of Finance — The Ministry of Finance brings out the Economic Survey and the Union Budget documents, not the WPI series.
(d)The Ministry of Consumer Affairs, Food and Public Distribution — This ministry monitors retail/wholesale prices of a few essential commodities for market intervention, but the WPI itself is published by the Office of the Economic Adviser under Commerce and Industry — the CPI, separately, is released by the National Statistical Office (MoSPI).

Concept

India runs two main price indices published by different agencies. The Wholesale Price Index (WPI) is released by the Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry, and measures price change at the wholesale/producer level (no services). The Consumer Price Index (CPI), which captures retail prices including services, is released by the National Statistical Office under the Ministry of Statistics and Programme Implementation (MoSPI) and is the RBI's target for inflation.

The distractors are all bodies that deal with the economy, so eliminate by matching agency to product: WPI ↔ Office of Economic Adviser (Commerce & Industry); Economic Survey ↔ Finance Ministry; monetary policy/repo rate ↔ RBI; CPI ↔ NSO/MoSPI. Remember WPI's current base year is 2011-12.

Key facts

WPI compiled by the Office of the Economic Adviser (OEA), DPIIT, Ministry of Commerce and Industry
WPI base year at present = 2011-12; released monthly; excludes services
CPI is released by the National Statistical Office (NSO), Ministry of Statistics (MoSPI)
Since 2016 the RBI's official inflation target is based on CPI, not WPI

Which body publishes which economic index/report

Wholesale Price Index (WPI)→Office of Economic Adviser, DPIIT — Ministry of Commerce & Industry

Consumer Price Index (CPI)→National Statistical Office (NSO) — MoSPI

Report on Currency and Finance→Reserve Bank of India (RBI)

Economic Survey→Ministry of Finance

Answer (b): the WPI is brought out by the Ministry of Commerce and Industry (Office of Economic Adviser).

Study next

WPI vs CPI: coverage, weights and base yearsBase year revisions of WPI (2011-12) and CPIGDP deflator and other measures of inflationRBI's monetary policy framework and the CPI inflation targetProducer Price Index (PPI) — the proposed successor to WPI

Common traps

Assuming the RBI compiles the WPI because it manages inflation
Mixing up who publishes CPI (NSO/MoSPI) with who publishes WPI (Commerce & Industry)

Asked as 'which body publishes index/report X', as a WPI base-year question, or via a Publisher–Publication match list (a repeated UPSC pattern).

Related PYQs

UPSC_2001_GS1_Q892001Open & attempt →

Match List I with List II and select the correct answer using the codes given below the Lists: List I (Publisher): I. Ministry of Industry; II. Central Statistical Organisation; III. Reserve Bank of India; IV. Ministry of Finance List II (Publication): A) Report on Currency and Finance; B) Economic Survey; C) Wholesale Price Index; D) National Accounts Statistics

(a) I-D, II-C, III-B, IV-A
(b) I-C, II-D, III-A, IV-B
(c) I-D, II-C, III-A, IV-B
(d) I-C, II-D, III-B, IV-A

Answer(b) I-C, II-D, III-A, IV-B

Same concept — matching publisher to publication: the Ministry of Industry (now Commerce & Industry) is paired with the Wholesale Price Index, exactly what this UPPSC question tests.

Practice

practice — not a real PYQ
The current base year of the all-India Wholesale Price Index (WPI) is:
- (a)2004-05
- (b)2011-12
- (c)2012-13
- (d)2017-18
Answer(b) 2011-12.
practice — not a real PYQ
Which of the following is released by the National Statistical Office (MoSPI) rather than the Ministry of Commerce and Industry?
- (a)Wholesale Price Index
- (b)Consumer Price Index (CPI)
- (c)Report on Currency and Finance
- (d)Economic Survey
Answer(b) the Consumer Price Index (CPI).