Why the Revision Was Needed
India Updates Merchandise Trade Index Base Year to 2022-23: The Government of India revised the base year of the Merchandise Trade Indices from 2012-13 to 2022-23 on 20 February 2026. The update reflects structural shifts in India’s economy and changing global trade dynamics. Over the past decade, export diversification and new trade partnerships have altered India’s trade basket.
The revision was undertaken by the Directorate General of Commercial Intelligence and Statistics (DGCI&S). It followed recommendations of a committee chaired by Professor Nachiketa Chattopadhyay of the Indian Statistical Institute, Kolkata.
Static GK fact: DGCI&S functions under the Ministry of Commerce and Industry and is headquartered in Kolkata.
Key Improvements in the New Series
The revised 2022-23 series introduces updated commodity coverage at the Principal Commodity level. Weights have been recalculated using trade values of 2022-23 to better represent current export and import shares. This ensures declining and emerging sectors are accurately captured.
The indices now align more closely with international standards. Integration with Standard International Trade Classification (SITC) and Broad Economic Categories (BEC) improves comparability with global datasets.
Such recalibration enhances the analytical strength of trade statistics. Policymakers can now assess sectoral competitiveness with greater precision.
Expanded Analytical Coverage
The updated series provides monthly, quarterly, and annual indices. It includes classification-wise data under Principal Commodity, SITC, and BEC categories. This layered structure improves depth of economic analysis.
The revision also covers bilateral and region-wise indices for India’s top 20 trading partners. This helps track performance in key markets and understand geopolitical trade shifts.
Additionally, detailed Terms of Trade indicators have been strengthened. These measures evaluate India’s purchasing power in international trade.
Static GK Tip: India’s major export destinations include the United States, United Arab Emirates, and European Union nations.
Understanding Terms of Trade
Gross Terms of Trade measure the ratio of export quantity index to import quantity index. It indicates changes in trade volume balance.
Net Terms of Trade compare export price index with import price index. It reflects gains or losses from price movements.
Income Terms of Trade adjust net terms by export volume, showing real purchasing capacity.
Improved computation of these indicators enables better macroeconomic forecasting. They are crucial for evaluating external sector stability.
Economic Significance of Base Year Revision
Revising the base year is a standard statistical practice. As trade structures evolve, older benchmarks may distort real performance trends. Updating to 2022-23 ensures relevance and reliability.
Such revisions are comparable to updates in the Gross Domestic Product (GDP) series and the Index of Industrial Production (IIP). They maintain alignment with global statistical best practices.
By modernizing trade indices, India strengthens evidence-based policymaking. Accurate export-import assessment directly supports trade negotiations and competitiveness strategies.
Static Usthadian Current Affairs Table
India Updates Merchandise Trade Index Base Year to 2022-23:
| Topic | Detail |
| Revised Base Year | 2022-23 |
| Previous Base Year | 2012-13 |
| Implementing Agency | Directorate General of Commercial Intelligence and Statistics |
| Announcement Date | 20 February 2026 |
| Committee Chair | Prof. Nachiketa Chattopadhyay |
| Key Classifications Added | SITC and BEC |
| Terms of Trade Types | Gross, Net, Income |
| Ministry Concerned | Ministry of Commerce and Industry |
