With reference to India, consider the following statements : 1. The Wholesale Price Index (WPI) in India is available on a monthly basis only. 2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles. Which of the statements given above is/are correct ?

The correct answer is B) 2 only.

Let's analyze each statement:

Statement 1: "The Wholesale Price Index (WPI) in India is available on a monthly basis only." This statement is incorrect. While the composite WPI index is indeed released on a monthly basis by the Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), the underlying data for some of its components, such as primary articles and fuel & power, are collected on a weekly basis. Therefore, to state it's "available on a monthly basis only" is inaccurate because data for certain components is collected and available more frequently.

Statement 2: "As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles." This statement is correct.

• The WPI (with base year 2011-12) primarily tracks prices at the wholesale level. Its basket includes Primary Articles (which contain food articles), Fuel & Power, and Manufactured Products. The weight of 'Food Articles' within the Primary Articles group is approximately 15.26%. Even if we consider processed food within manufactured products, the overall emphasis on food is lower.
• The CPI(IW) (with base year 2016) measures changes in the retail prices of a fixed basket of goods and services consumed by industrial workers. Food and Beverages typically constitute a very significant portion of the consumption basket for this demographic, with a weight of approximately 39.06%. Due to the difference in their scope (wholesale vs. retail, and the specific consumption basket for CPI(IW)), food articles have a substantially higher weight in CPI(IW) compared to WPI.

Therefore, statement 1 is incorrect, and statement 2 is correct.