UPSC Exam  >  UPSC Questions  >  The base year used for WPI isa)1993-94b)2001-... Start Learning for Free
The base year used for WPI is
  • a)
    1993-94
  • b)
    2001-02
  • c)
    2004-05
  • d)
    None of the above
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the ...
The correct answer is option 'C' - 2011-12.

Explanation:

The Wholesale Price Index (WPI) is an important indicator used to measure the average change in the prices of goods at the wholesale level in a given period of time. It is published by the Office of the Economic Adviser, Ministry of Commerce and Industry, Government of India.

The WPI is calculated using a fixed base year method, where a specific year is chosen as the reference year against which the price changes are measured. The base year serves as a benchmark for comparison and provides a reference point for calculating the index.

The base year used for the WPI has undergone multiple revisions over the years to account for changes in the economic scenario and price movements. The most recent revision was made in 2011-12.

During the revision process, a new set of representative commodities and weights are selected based on their significance in the economy. These commodities are chosen from various sectors such as agriculture, manufacturing, mining, and electricity.

The base year is chosen to reflect a period of relative stability and representative of the economic structure. It should be a year when the economy is considered to be in a normal state, without any major fluctuations or disruptions.

The choice of the base year is crucial as it affects the calculation of the index and the interpretation of the results. The base year should be periodically revised to ensure that the WPI remains accurate and relevant in reflecting the changes in the economy.

In the case of the WPI, the base year used is 2011-12. This means that the price movements of various goods are measured relative to the prices prevailing in 2011-12. The weights assigned to different commodities are also based on their importance in the 2011-12 economy.

By using a fixed base year like 2011-12, the WPI provides a useful tool for monitoring and analyzing inflationary trends in the economy. It helps policymakers, economists, and businesses to understand the price dynamics and make informed decisions based on the changes in wholesale prices.

In conclusion, the correct base year used for the WPI is 2011-12.
Free Test
Community Answer
The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the ...
WPI data is published by the Office of Economic Adviser, Ministry of Commerce and Industry, while CPI data is published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The base year for WPI is 2011-12 while the base year for CPI is 2012.
Explore Courses for UPSC exam

Top Courses for UPSC

The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
Question Description
The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The base year used for WPI isa)1993-94b)2001-02c)2004-05d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev