Base Year of Merchandise Trade Indices revised to FY 2022–23

The Directorate General of Commercial Intelligence and Statistics (DGCI&S), under the Ministry of Commerce and Industry, has revised the base year of India’s Merchandise Trade Indices from 2012–13 to 2022–23 (2022–23 = 100) to reflect major structural changes in the economy and evolving trade patterns.

What Are Merchandise Trade Indices?

Merchandise Trade Indices measure changes in the unit values (prices) of India’s exports and imports over time.
They help track price movements in the external sector and assess trade competitiveness.

Why the Base Year Was Updated

The revision accounts for:

• Changes in commodity composition
• Shifts in global and domestic trade patterns
• Structural transformation of the Indian economy
• Need for alignment with current macroeconomic indicators

Updating the base year ensures more accurate economic analysis and policymaking.

Who Uses These Indices?

• Ministry of Statistics and Programme Implementation (National Accounts Division) uses Export–Import Unit Value Indices as deflators to estimate real exports and imports in GDP calculations.
• Reserve Bank of India relies on them for balance of payments analysis, external sector assessment, and evaluation of price competitiveness.

Net Terms of Trade

Net Terms of Trade (Commodity Terms of Trade) = Export Price Index ÷ Import Price Index

• If the ratio rises → Export prices increase relative to import prices → Trade position improves
• If it falls → Import prices rise faster → Trade position worsens

Significance

• Improves accuracy of GDP estimates
• Enhances monitoring of trade competitiveness
• Supports evidence-based trade and monetary policy
• Reflects modern economic realities