New Series for Revision of Base of CPI(IW) launched

New Series for Revision of Base of CPI(IW) launched 

Labour Bureau, Government of India

CPI - Industrial Workers


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 important 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, 2013-2014=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. The price collection work was done by the Labour Bureau and the main survey work of income & expenditure data collection was conducted by NSSO.

In line with the recommendations of Index Review Committee (IRC), the possibilities of extending the  scope of the new series to two more additional sectors i.e. Handloom and Construction sectors are being considered. However, Labour Bureau expects an increase in the number of centres from existing 78 centres to around 88-95 centres approximately. Consequently, the total number of family budget enquiry schedules and house rent schedules to be canvassed would increase to 70,000 schedules approximately.

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.

List of members of Standing Tripartite Committee (STC)
1.Principal Labour & Employment Adviser Ministry of LAbour & Employment Shram Shakti Bhawan, Rafi Marg, New DelhiChairman
1. Central Trade Unions/Workers Representatives (Two)
2. Sh.Suryakant Shrikrishna Paranjape General Secretary, Bharatiya Mazdoor Sangh, 185, Shaniwar Peth, Vishwakarma Bhawan, Pune-411 030Member
3. Sh. V.K. Sharma Working President Indian National Trade Union Congress Qtr. No. 398/B/Sector-3, P.O. Balco Nagar, Korba, Bilaspur-495 684.Member
II. Employers Organizations (Two)
4.Sh. B.V.K.K. Rao Advisor (Finance) Standing Conference of Public Enterprises (SCOPE) Core 8, First Floor, SCOPE Complex, 7, Lodhi Road, New Delhi-03.Member
5.Sh. C.S. Rao Chief Economicst, Associated Chamber of Commerce & Industry of India) ASSOCHAM, 1, Community Centre, Zamrudpur, Kailash Colony, New Delhi-48Member
III.Independent Member (One)/Academic Representative (One)
6.Sh. G.K. Lath Chartered Accountant A. Sachdev & Company, Chartered Accountants 27(11) Gokhale Marg, Lucknow-226 001Member
7.Dr Arup Mitra, Institute of Economic Growth, University Enclave, University of Delhi (North Campus), Delhi- 110 007Member
IV. Womens Organization (One)
8.Ms. Pratibha Pandya, Self Employed Women's Association (SEWA) Sewa Reception Centre Opp. Victoria Garden, Bhadra, Ahmedabad-380 001.Member
V. State Representatives (Three)
9.Sh. Vilas Kumar Kesavdas Buwa Dy. Commissioner of Labour, (Industrial Relations) Head Office, Office of the Commissioner of Labour, Kamgar Bhawan, C-20, E-Block, Bandra-Kurla Complex, Near City Park, Bandra(E), Mumbai-400051Member
10. Sh. Thiru K. Kumaresan, Department of Economics and Statistics, 359, Anna Salai,Teynampet, Govt. of TamilNadu, Chennai-600 006Member
11. Sh. M.L.Sharma Economic Adviser to Govt. Punjab Economic and Statistical Organisation, Punjab SCO No. 35-36, Sector 17-E, ChandigarhMember
VI. Central Government Representatives (Three)
12. Sh. Sanjay Kumar Deputy Director General Central Statistical Office(PCL Unit ), Ministry of Statistics and Programme Implementation, Sardar Patel Bhawan, Sansad Marg , New Delhi-1.Member
13. Sh. S. Bhavani Senior Economic Advisor Deptt. Economic Affairs, Ministry of Finance, 36, North Block, New Delhi -1Member
14. Dr. Anandi Ravichnadran Economic Adviser Department of Consumer Affairs Room no. 312, A Wing, Shastri Bhawan, New Delhi- 110 001Member
VII Ministry of Labour & Employment (Two)
15.Deputy Director General, Ministry of Labour & Employment Shram Shakti Bhawan, New DelhiMember
16. Director General, Labour Bureau, S.C.O. 28-31, Sector 17-A, Chandigarh Member Secretary

ii) Group of Technical Advisory Committee on Statistics of Prices and Cost of Living (TAC on SPCL): 

Ministry of Statistics & Programme Implementation on request of Labour Bureau has constituted a small group of TAC on SPCL vide their office memorandum No. M-11011/4/2012-NAD(PCI), dated 14th February, 2013. The terms of reference of the small group shall be as follows: The Group will: 

(i) Examine all the technical issues relating to conduct of Working Class family Income & Expenditure Survey (WCFIES); 

(ii) Examine the centre specific weighting diagrams for all the centres, selection of base year, compilation of base year prices, trial indices and computation of linking factors etc; 

(iii) Consider any other issue (s) matter relating to revision of CPI(IW) as may be felt necessary; 

(iv) Submit its recommendations to the TAC on SPCL, within three years from the date of notification, for its consideration and approval. Composition of the Group:

(i)Director General and CEO, National Sample Survey Office, Ministry of Statistics and PI, Sardar Patel Bhawan, Sansad Marg, New Delhi- 110 001.Chairman
(ii)Additional Director General (FOD), National Sample Survey Office, East Block No. 6, R.K. Puram, New Delhi- 110 066Member
(iii) Additional Director general (SDRD), National Sample Survey Office, Mahalanobis Bhawan, 1 64, GLT Road, Near Dunlop, Kolkata.Member
(iv)Senior Economic Adviser (Prices), Department of Economic Affairs, Ministry of Finance, North Block, New Delhi 110 001.Member
(v) Deputy Director General, PCI Unit, National Accounts Division, Central Statistics Office, Sardar Patel Bhawan, Sansad Marg, New Delhi- 110 001.Member
(vi) Director General, Labour Bureau, Ministry of Labour & Employment, SCO 28-31, Sector 17-A, Chandigarh.Member
(vii) Advisor, Department of Statistics and Information Mgt., Reserve Bank of India, Central Office, C-8-9, Bandra-Kurla Complex, Post Box No. 8128, bandra (East), Mumbai 400 051.Member
(viii) Adviser, Monetary Policy Department, Reserve Bank of India, Central Office Building, 24th Floor, Shahid Bhagat Singh Road, Mumbai 400 001.Member
(ix)Economic Adviser, Office of the Economic Adviser, Deptt. Of Industrial Policy and Promotion, Udyog Bhawan, New Delhi.Member
(x)Director, Labour Bureau, Ministry of Labour & Employment, SCO 28-31, Sector 17-A, Chandigarh.Member Secretary



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