Abhijit Sen was the chairman of the Committee on the Wholesale Price Index which submitted its report in _____.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2: 2008.
Explanation:
- To review the methodology of the Wholesale Price Index (WPI) and to update its Base Year, the Government of India constituted a Working Group chaired by Professor Abhijit Sen.
- Report Submission: This committee submitted its detailed report in 2008.
- Key Recommendations: The committee suggested changing the base year of the WPI from 1993-94 to 2004-05. Additionally, they recommended making comprehensive changes to the 'basket of commodities' and revising the weightage assigned to Manufactured Products.
- Implementation: Based on these recommendations, the government released the new series of the WPI (with the base year 2004-05) in September 2010.
Additional Facts:
- Current Status: Currently, the base year for the WPI in India is 2011-12. This was implemented based on the recommendations of the Soumitra Chaudhuri Committee.
- WPI vs. CPI: * WPI (Wholesale Price Index): It is released by the Office of the Economic Adviser under the Ministry of Commerce and Industry. It measures the prices of commodities only.
- CPI (Consumer Price Index): It is released by the Ministry of Statistics and Programme Implementation (MoSPI). It includes both commodities and services.
Potential Questions for Upcoming Exams:
Question: What is the current Base Year for the Wholesale Price Index (WPI) in India?
Answer: 2011-12.
Question: On the recommendation of which committee did the RBI adopt the Consumer Price Index (CPI) as its primary benchmark for measuring inflation, instead of the WPI?
Answer: The Urjit Patel Committee. Question: Which group carries the highest weightage in the Wholesale Price Index (WPI)?
Answer: Manufactured Products — approximately 64%.