Public SystemsIMPROVEAnnounced
India-wide
Expenditure Dept asked ministries to use PPI (not WPI) for escalation in future contracts
13 Jul 2026
India’s Department of Expenditure issued an office memorandum dated 2026-07-13 to all ministries and departments encouraging them to adopt the Producer Price Index (PPI) in place of the Wholesale Price Index (WPI) for price escalation/rate variation clauses in future government procurement contracts, once PPI becomes available. The article also notes that the Commerce Ministry has begun issuing monthly PPI data for goods and services since June 2026.
Why it matters
Using PPI for contract price adjustments can change how inflation-linked payments are calculated in government procurement, affecting cost sharing between the government and contractors during project execution.
Department of Expenditure, Ministry of FinanceMinistry of Commerce and Industry