The Indian government has officially released a new inflation series, marking a significant recalibration of how the world’s fastest-growing major economy tracks price pressures. The Ministry of Statistics and Programme Implementation (MoSPI) has shifted the Consumer Price Index (CPI) base year to 2024, replacing the outdated 2012 framework. This technical adjustment is designed to reflect a dramatic evolution in consumer behavior, where household expenditure has more than doubled over the last decade, particularly in discretionary categories like textiles, apparel, and digital services.

Apparel and footwear weights recalibrated amid premiumization trend

The new CPI basket specifically targets the shift in ‘socio-economic status’ mentioned by Saurabh Garg, Secretary, MoSPI. While the overall weight of food and beverages has been reduced from nearly 54 per cent to approximately 37 per cent, the measurement of clothing and footwear has been refined to include modern retail channels. For the first time, price data from online marketplaces and streaming platforms are being integrated into the national index. Analysts note, as disposable incomes rise, Indian consumers are moving away from basic commodities toward ‘premiumized’ fashion, a trend that the previous 2012-based index failed to capture accurately.

Revised GDP framework to benchmark industrial scaling in textiles

On February 27, the government will follow the inflation update with a new GDP series using 2022-23 as the base year. This revision will incorporate real-time data from the Goods and Services Tax (GST) and the gig economy, providing a more transparent valuation of the textile manufacturing base. The industry currently contributes roughly 2.3 per cent to India's GDP, but the inclusion of new industrial clusters and informal sector data is expected to show a more robust expansion. Industry leaders believe this data-driven approach will assist the Reserve Bank of India (RBI) in fine-tuning interest rate policies, as the previous forecasting models were often criticized for overestimating inflation due to an over-reliance on volatile food prices.

MoSPI is the nodal agency for the systematic development of India’s statistical system. It manages the National Sample Survey (NSS) and tracks key indicators like CPI, GDP, and the Index of Industrial Production (IIP) to guide federal fiscal policy.The ministry is currently executing a 2030 modernization roadmap to integrate AI-driven data collection and real-time GST metrics.