Which ministry of the Government of India initiated the exercise to revise the base year to 2017–2018 for the computation of wholesale inflation (Wholesale Price Index)?

Introduction / Context:
Inflation indices such as the Wholesale Price Index are periodically updated by changing the base year and revising the basket of commodities to reflect current economic structure. In India, different ministries and departments are responsible for different official statistics. The exercise to revise the base year for wholesale inflation is carried out within a specific ministry. This question tests whether the learner knows which ministry initiated the revision of the base year to 2017–2018 for the computation of wholesale inflation.

Given Data / Assumptions:

• The focus is on wholesale inflation measurement, generally associated with the Wholesale Price Index.
• The options include several key economic ministries: Commerce and Industry, Finance, Corporate Affairs, and Statistics and Programme Implementation, with one option suggesting all of them together.
• In India, the Office of the Economic Adviser, which deals with the Wholesale Price Index, functions under the Ministry of Commerce and Industry.
• The question assumes awareness of this administrative responsibility.

Concept / Approach:
The Wholesale Price Index is compiled and released by the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry. When the base year for WPI is revised, the technical and administrative work is led by this office and ministry. While the Ministry of Finance and other departments may use the WPI in their analyses, they are not responsible for compiling it. Therefore, the correct approach is to associate the base year revision of wholesale inflation with the Ministry of Commerce and Industry.

Step-by-Step Solution:
Step 1: Recall which ministry houses the Office of the Economic Adviser responsible for preparing the Wholesale Price Index.Step 2: Recognise that this office is part of the Ministry of Commerce and Industry.Step 3: Note that revisions of the WPI base year are technical statistical exercises typically managed by the same office that regularly compiles the index.Step 4: Compare this understanding with the list of ministries offered in the options.Step 5: Select the Ministry of Commerce and Industry as the correct answer.

Verification / Alternative check:
Official government documents and press releases regarding the WPI clearly state that the index is compiled by the Office of the Economic Adviser in the Ministry of Commerce and Industry. These communications also describe the process of changing the base year and updating the commodity basket. While the Ministry of Statistics and Programme Implementation deals with many other indices and surveys, the WPI remains specifically under Commerce and Industry. This confirms that the revision exercise originates from that ministry.

Why Other Options Are Wrong:
The Ministry of Finance uses inflation data for budgeting and policy making but does not directly compile the Wholesale Price Index. The Ministry of Corporate Affairs regulates companies and corporate law and is not responsible for inflation indices. The Ministry of Statistics and Programme Implementation oversees the Consumer Price Index and various surveys but not the WPI. The option suggesting that all ministries together started the exercise is misleading, because the primary responsibility lies with the Ministry of Commerce and Industry through its Economic Adviser office.

Common Pitfalls:
Some students assume that any important economic statistic must be handled either by the Ministry of Finance or the Ministry of Statistics and Programme Implementation, overlooking the role of Commerce and Industry. Others may be confused by the phrase wholesale inflation and think it is directly a statistical function rather than an index managed within a specific ministry. Remembering that WPI is the responsibility of the Ministry of Commerce and Industry helps avoid these errors.

Final Answer:
The Ministry of Commerce and Industry initiated the exercise to revise the base year to 2017–2018 for the computation of wholesale inflation.