The WPI (wholesale price index) for the 'textiles' group increased by 1.4 per cent to 141.6 (provisional) from 139.6 (provisional) for the previous December year-on-year (YoY) comparison. This increase was mainly due to the rise in cotton textiles (3.7 per cent), which is a major component in the textiles group. A Fibre2Fashion report

 

Prices always fluctuate for all commodities, and the wholesale price index (WPI) represents the average wholesale price movement of some select commodities. The commodities are selected by the government on the basis of those that are more important in terms of market share at a time, and can represent the entire economy. The WPI gives the idea of price movement in the market. The Indian government decides its important economic and financial policies based on the WPI. In India, the WPI is used by the government, banks, industries and businesses. The three major groups in the WPI of India are: (i) primary articles (food, non-food and minerals), (ii) fuel, power, light and lubricants (coal, mineral oils, electricity), and (iii) manufactured products (food, textiles, leather, wood, paper, rubber, chemicals, beverages, etc).

 

For the WPI, data is collected on a voluntary basis at present. The price data for primary articles and fuel and power are obtained by government ministries and departments. For manufactured products, the data is obtained from different government sources and top manufacturing units. The data is compiled by the office of the economic advisor, and published on a monthly and yearly basis. The government revises the WPI series from time to time. The WPI of the new series [with base year 2004-05] was launched on September 14, 2010. A total of 676 commodities have been selected, and the number of price quotations is 5482. Among textile commodities, the total number of price quotations is 457 which includes all major products including subsidiary products of cotton textiles, manmade textiles, woollen textiles and others.

 

1. WPI of textile groups

The textiles sector is a major contributor to the Indian economy. The textiles industry provides employment to 105 million people directly or indirectly. The GDP (gross domestic product) contribution of the textiles sector is around 5 per cent. The investment in textile industry is approximately $108 billion. The three main groups of the industry are considered in WPI: cotton textile, manmade textile and woollen textile. The WPI for the 'textiles' group increased by 1.4 per cent to 141.6 (provisional) from 139.6 (provisional) for the previous December year-on-year (YoY) comparison mainly due to the rise in cotton textiles (3.7 per cent), which is a major component in the textiles industry in India.