Laspeyres Index with base 2012-13

Index Numbers on Foreign Trade

The Directorate General of Commercial Intelligence and Statistics (DGCI&S) is responsible for collecting, compiling and disseminating Foreign & Inland Trade Statistics. Compilation of foreign trade index numbers is another important activity of DGCI&S. It was started in the year 1944 with 1938-39 as base period. Subsequently, it has undergone a number of revisions. The Indian Statistical Institute was engaged to revise the methodology and the base year. The new Indices are, thus, based on the methodology suggested by the Institute.

As per their recommendations, the Indices are compiled with the following characteristics:

Methodology : Lapeyres Price Index formula with a Fixed Base system is being used to compute the Unit Value Indices. The Quantity Indices are computed as the ratio of the Value Indices to the Unit Value Indices.

Base Year : The Financial Year 2012-13 has been selected as a statistically appropriate Base Year.

Commodity Basket : All the items at 8-digit level in the ITCHS  Classification has been included in the Commodity Basket.

Format of Presentation of Indices : The Indices are presented primarily according to the 169 Principal Commodity (PC) Classification. Apart from that the present format of presentation, i.e., presentation of Indices in SITC and BEC would also be continued. For the SITC Classification, the new Indices are compiled according to the 1, 2 and 3-digit SITC codes. And for BEC Classification, the Indices are compiles according to the 1 and 2-digit codes. The Terms of Trade have been presented separately.

Bilateral and Region-wise Trade Indices : The Bilateral Indices are compiled for the Top 20 Export and Import partner nations of India. In case of regions, the Region-wise Indices would be compiled for 20 regions and groupings which are available in all standard foreign trade publications of DGCIS.

Time period for compilation of Indices : The Indices will be published on a monthly, quarterly and yearly basis.

 New series of Index numbers : The new series of Index numbers have been compiled from April, 2013 onwards.

Salient Features of the new Foreign Trade Indices, Formulas and Interpretation

 Export Indices

 Import Indices

 Terms of Trade