The Ministry of Commerce and Industry has revised the base year of Merchandise Trade Indices to FY 2022-23 from 2012-13.
The indices are important indicators of external sector price movements and are widely used for economic analysis, including national accounts compilation and assessment of terms of trade.
The revision in the base year has been made to accommodate the structural changes in the economy, shifts in commodity composition, evolving trade patterns, and the need for improved alignment with contemporary macroeconomic indicators, a statement by the ministry said.
Over the past decade, India’s trade basket has undergone substantial changes due to emergence of new commodities, technological advancements, Global supply chain restructuring and changes in relative price structures due to which the earlier base year (FY 2012–13) no longer adequately reflected the prevailing trade structure, it said.
The National Accounts Division (NAD) of the Ministry of Statistics and Programme Implementation uses the Export and Import Unit Value Indices as deflators for estimating real exports and imports in GDP compilation.
The Reserve Bank of India (RBI) relies on these indices for external sector assessment, balance of payments analysis, and evaluation of price competitiveness. Various Ministries and Government agencies also use them to frame and review trade-related policies and to assess movements in international prices.