BASE YEAR UPDATION OF CPI FOR INDUSTRIAL WORKERS (CPI-IW) OF SERIES 2001=100 TO 2015=100

BASE YEAR UPDATION OF CONSUMER PRICE INDEX NUMBERS FOR INDUSTRIAL WORKERS (CPI-IW)OF SERIES 2001=100 TO 2015=100

Background of CPI-IW series:

The CPI-IW series on scientific lines was first introduced with base 1960=100 which was based on the results of Family Living Survey conducted in 1958-59 at 50 industrially important centres. The series was then, updated on base 1982=100 and a revision in 1999-2000 has further updated the base on 2001=100. The current series of CPI-IW with base year 2001=100 covers 78 industrially mportant centers spread across the country.

Need for Base Updation:

The consumption pattern of the working class population undergoes change over a period of time and therefore, it becomes necessary that the consumption basket is updated from time to time to account for these changes and to maintain the representative character of the index. The need for frequent revision of base on account of fast changing consumption pattern of the target group has been recommended by International Labour Organisation, National Statistical  Commission, National Commission on Labour  and also Technical Advisory Committee on Statistics of Prices and Cost of Living. Also this recommendation was strongly reiterated by the Index Review Committee set up under the Chairmanship of Prof. Chadha which inter-alia stated that the intervening gap between the two series should not exceed 10 years. Labour Bureau accordingly, has proposed to revise the base year of the existing CPI-IW series 2001=100 to a more recent base year preferably, 2015=100.

Scope and Coverage:

The current series of CPI-IW with base 2001=100 was constructed on the basis of employment data in seven sectors namely, Registered Factories, Mining, Plantations, Ports & Docks, Public Motor Transport, Electricity Generation & Distribution Establishments and Railways sector. The current series comprises of a basket of about 370 items and 289 price collection markets spread across 78 centres of the country. In the existing series, the Working Class Family Income & Expenditure Survey was conducted during 1998-99 by the NSSO and a sample size of 41040 family budget schedules and 15960 house rent schedules (i.e. about a total of 57000 schedules) were canvassed from 78 industrially important centres of the country.

In the new Working Class Family Income & Expenditure Survey a sample size of 48384 family budget schedules and 18816 house rent schedules (i.e. total of 57000 schedules) will be  canvassed from 88 industrially important centres of the country. The price collection work will be done by the Labour Bureau and the main survey work of income & expenditure data collection will be conducted by NSSO. The new series of CPI-IW will cover the following 88 Centres belonging to the 7 sectors of the existing series.

Centres selected for the new series of CPI-IW ( 2015=100):

1	Andhra Pradesh	01.  Guntur
		02.  Vishakhapatnam
		03.  Nellore
2	Assam	04.  Biswanath Chariali
		05.  Doom-Dooma-Tinsukia
		06.  Guwahati
		07.  Labac Silchar
		08.  Sibsagar
		09.  Numaligarh-Golaghat
3	Bihar	10. Monghyr-Jamalpur
		11. Patna
4	Chandigarh	12. Chandigarh
5	Chhattisgarh	13. Bhilai
		14. Korba
		15. Raipur
6	D& N Haveli	16. Dadra & Nagar Haveli
7	Delhi	17. Delhi
8	Goa	18. Goa
9	Gujarat	19. Ahmedabad
		20. Bhavnagar
		21. Rajkot
		22. Surat
		23. Vadodara
10	Haryana	24. Gurgaon
		25. Faridabad
		26. Yamunanagar
11	Himachal Pradesh	27. Himachal Pradesh
12	J & Kashmir	28. Jammu & Kashmir
13	Jharkhand	29. Bokaro
		30. Dhanbad- Jaria
		31. Jamshedpur
		32. Ramgarh
14	Karnataka	33. Bangalore
		34. Belgaum
		35. Chikmagalur
		36. Davanagere-Harihara
		37. Hubli-Dharwad
		38. Mercara-Kodagu
		39. Mysore
15	Kerala	40. Ernakulam/Alwaye
		41. Idukki
		42. Kollam
16	Madhya Pradesh	43. Bhopal
		44. Chindwara
		45. Jabalpur
		46. Indore
17	Maharashtra	47. Mumbai
		48. Nagpur
		49. Nasik
		50. Pune
		51. Sholapur
		52. Thane
18	Meghalaya	53. Shillong
19	Odisha	54. Angul-Talchar
		55. Cuttak Keonjhar
		56. Angul-Talchar
20	Puducherry	57. Puducherry
21	Punjab	58. Amritsar
		59. Jallandhar
		60. Ludhiana
		61. Sangrur
22	Rajasthan	62. Alwar
		63. Bhilwara
		64. Jaipur
23	Tamil Nadu	65. Chennai
		66. Coimbatore
		67. Conoor
		68. Madurai
		69. Salem
		70. Triunelveli
		71. Virudhu Nagar
24	Telangana	72. Hyderabad
		73. Manchirya
		74. Warrangal
25	Tripura	75. Tripura
26	Uttar Pradesh	76. Agra
		77. Ghaziabad-G.B.Nagar
		78. Kanpur
		79. Lucknow
		80. Varanasi
27	Uttrakhand	81. Udham Singh Nagar
28	West Bengal	82. Darjeeling
		83. Durgapur
		84. Haldia
		85. Jalpaiguri
		86. Howrah
		87. Kolkatta
		88. Raniganj

Committees:

i) Standing Tripartite Committee:

The Index Review  Committee  (IRC) headed by Prof. G.K.  Chadha recommended  for constitution of a Standing Tripartite Committee (STC) of all the stakeholders. Accordingly Ministry of Labour & Employment constituted a Standing Tripartite Committee (STC) vide order No. Y-12011/5/2010-ESA(LB), dated 12th January, 2011.

The Terms of Reference of the STC formed are as follows: The Standing Tripartite Committee will

{i} examine the various aspects of the base year revision of Consumer Price Index Number Series for Industrial Workers {CPI-IW} including the selection of Centres, sample size, sampling design, methodology for deriving the weighting diagram and linking factor;

{ii} examine the method of price collection procedures and machinery of price collection;

{iii} examine the centre specific weighting diagrams for all the centres, selection of base year, compilation of base year prices, trial indices; and

{iv} consider any other relevant issue{s}/matter as may be necessary.

Secretarial assistance to the Standing Tripartite Committee will be provided by the Labour Bureau, Ministry of Labour. The Committee may also enlist the assistance of subject matter experts within and/or outside the Government and may co-opt members according to necessity.