Consider the following statements regarding weightage of different art

Consider the following statements regarding weightage of different articles in Wholesale Price Index (WPI) :

Join Our Telegram Channel

1. Fuel and power have higher weightage in WPI than that of primary articles.
2. Weightage of manufactured products in WPI is higher than that of fuel and power.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CDS-1 – 2024

Download PDF Attempt Online

Statement 1 is incorrect: In the Wholesale Price Index (WPI) structure for India (based on the 2011-12 series), the weightage of Primary Articles is approximately 22.62%, while the weightage of Fuel & Power is approximately 13.15%. Therefore, Fuel and Power have lower weightage than Primary Articles.
Statement 2 is correct: The weightage of Manufactured Products is the highest among the three broad groups, approximately 64.23%. This is significantly higher than the weightage of Fuel & Power (13.15%).

Manufactured Products have the highest weightage in WPI, followed by Primary Articles, and then Fuel & Power (based on 2011-12 series).

The WPI weights are revised periodically to reflect changes in the composition of wholesale trade in the economy. The current series (2011-12) is based on this distribution. This weightage structure is important for understanding which sectors’ price changes have the most impact on the overall WPI.

More similar MCQ questions for Exam preparation:-