What Happened
- The Directorate General of Commercial Intelligence and Statistics (DGCI&S) under the Ministry of Commerce and Industry announced on February 20, 2026, a revision of the base year for India's merchandise trade indices from 2012-13 to 2022-23.
- The revision was undertaken on the recommendations of an expert committee constituted by DGCI&S, chaired by Prof. Nachiketa Chattopadhyay of the Indian Statistical Institute (ISI), Kolkata.
- The committee examined existing methodology, data coverage, weighting structure, and compilation practices, recommending refinements aligned with international best practices.
- The new base year (2022-23 = 100) better reflects the current composition and structure of India's trade basket, including the rise of new export sectors, shifts in trading partnerships, and post-pandemic trade realities.
- The revision affects three key trade indices: Export Unit Value Index (EUVI), Import Unit Value Index (IUVI), and Terms of Trade (TOT) index.
Static Topic Bridges
Merchandise Trade Indices: What They Measure and Why They Matter
Merchandise trade indices are statistical tools used to track changes in the price (unit value) and volume of a country's goods exports and imports over time. The three core indices are: (1) Export Unit Value Index (EUVI) — tracks changes in the price of exported goods; (2) Import Unit Value Index (IUVI) — tracks changes in the price of imported goods; and (3) Terms of Trade (TOT) index — the ratio of EUVI to IUVI, indicating whether a country's export prices are rising faster or slower than its import prices. A rising TOT means each unit of export buys more imports (favourable); a falling TOT means the opposite (unfavourable). These indices are compiled by DGCI&S and are used by policymakers, RBI, MoF, and researchers for trade policy analysis, inflation monitoring, and national income accounting.
- Compiled by: DGCI&S (Directorate General of Commercial Intelligence and Statistics), Ministry of Commerce and Industry
- Headquarters of DGCI&S: Kolkata
- Three key indices: Export Unit Value Index (EUVI), Import Unit Value Index (IUVI), Terms of Trade (TOT)
- Terms of Trade = EUVI / IUVI × 100
- Base year revised from: 2012-13 to 2022-23
- Frequency of release: Monthly
- International standard: IMF's Export and Import Price Index Manual (XMPI)
Connection to this news: Updating the base year ensures that the weighting structure reflects India's current trade composition — e.g., higher weight for electronics, pharmaceuticals, and refined petroleum products — making the indices more accurate for policy use.
Base Year Revision in Economic Statistics: Purpose and Process
In economic statistics, a base year is a reference year against which changes in price, volume, or value are measured. The base year must be periodically updated (typically every 10-15 years) because economic structures change — new industries emerge, old ones decline, trading patterns shift, and price relativities change. An outdated base year results in index distortion: the weights assigned to different commodities or sectors no longer reflect their actual importance in the economy. India has undergone several base year revisions across its major economic statistics: GDP series (most recently updated to 2011-12, with 2022-23 revision under process), CPI (2012 = 100), WPI (2011-12 = 100), and IIP (2011-12 = 100). The revision of merchandise trade indices to 2022-23 is consistent with the broader trend of aligning economic statistics to post-pandemic structural realities.
- GDP base year (current series): 2011-12
- WPI base year (current series): 2011-12 = 100
- CPI base year (current series): 2012 = 100 (rural/urban/combined)
- IIP base year (current series): 2011-12 = 100
- Trade indices base year (revised): 2022-23 = 100 (from 2012-13)
- Process for revision: Expert committee constituted by DGCI&S, chaired by ISI Kolkata professor
- International alignment: IMF's XMPI Manual guides methodology
- Weighting revision: reflects current trade basket composition — higher weights for petroleum, electronics, pharma
Connection to this news: The merchandise trade indices revision is the first major update to this statistical series in over a decade. It reflects the significant structural transformation of India's trade basket since 2012-13 and aligns with global statistical best practices.
DGCI&S: India's Trade Statistics Authority
The Directorate General of Commercial Intelligence and Statistics (DGCI&S) is the premier organisation in India for the collection, compilation, and publication of trade statistics and commercial information. Established in 1866 (as the Statistical Bureau), it is one of India's oldest government statistical agencies. DGCI&S compiles monthly data on India's merchandise exports and imports by commodity and country, publishes the Foreign Trade Statistics of India, and maintains the trade indices. Its data forms the primary input for India's trade policy analysis, Balance of Payments (BoP) accounting by RBI, and economic research.
- Full name: Directorate General of Commercial Intelligence and Statistics
- Ministry: Ministry of Commerce and Industry
- Headquarters: Kolkata (functioning since 1866)
- Key publications: Monthly Trade Statistics, Foreign Trade Statistics of India, trade indices
- Data uses: BoP accounting (RBI), trade policy analysis (MoC), economic research
- Relation to BoP: DGCI&S merchandise trade data feeds into RBI's Current Account compilation
- Expert committee for revision: Chaired by Prof. Nachiketa Chattopadhyay, ISI Kolkata
Connection to this news: DGCI&S is the issuing authority for the revised trade indices. The institutional credibility of the revision rests on its engagement with an independent academic committee from ISI Kolkata to ensure methodological rigour.
Key Facts & Data
- Previous base year for trade indices: 2012-13
- New base year: 2022-23 (2022-23 = 100)
- Announcement date: February 20, 2026
- Issuing body: DGCI&S, Ministry of Commerce and Industry
- Expert committee chair: Prof. Nachiketa Chattopadhyay, Indian Statistical Institute (ISI), Kolkata
- Three affected indices: Export Unit Value Index (EUVI), Import Unit Value Index (IUVI), Terms of Trade (TOT)
- Rationale: post-pandemic structural shifts in India's trade basket — new sectors (electronics, pharma), new trading partners, revised commodity compositions
- Other statistical base years: WPI 2011-12; CPI 2012; IIP 2011-12; GDP 2011-12
- India's merchandise exports FY 2024-25: approximately $437 billion; imports approximately $677 billion