The government Thursday set up an 18-member working group for the revision of the current series of Wholesale Price Index.
The revision of the base year would help in presenting a more realistic picture of the price situation and its impact on people.
The commerce and industry ministry in a statement said the current series of Wholesale Price Index (WPI) with 2011-12 as base year was introduced in May 2017.
Since 2011-12, significant structural changes have taken place in the economy, it said.
"Therefore, it has become necessary to examine the coverage of commodities, weighting diagram and related issues pertaining to the existing series of index numbers of WPI," it said.
Accordingly, it said, the government has constituted a working group for the revision of current series of WPI(Base 2011-12) under Chairmanship of Ramesh Chand, Member, Niti Aayog.
The other members are from National Statistical Office, Ministry of Finance, Department of Agriculture, RBI and Department of Consumer Affairs.
The Department for Promotion of Industry and Internal Trade will be the nodal office for the group and will process its report/recommendation for further necessary action.
The Terms of Reference of the group include selecting the most appropriate Base Year for the preparation of a new official series of Index Numbers of (WPI and Producer Price Index (PPI) in India.
The group will also review commodity basket of the current series of WPI and suggest additions/deletions of commodities in the light of structural changes in the economy witnessed since 2011-12.
It will also review the existing system of price collection in particular for manufacturing sector and suggest changes for improvement, to decide on the computational methodology to be adopted for monthly WPI/PPI.