“Rise in energy, petrochemicals and metals points to renewed cost-push inflation with broad-based acceleration with inflation in Fuel and Power increasing to 27.41%, Manufactured Products to 7.48%, and Primary Articles to 7%. Persistent increases in wholesale prices, particularly in upstream industries, could gradually pass through to downstream manufacturing and consumer prices with a lag unless offset by productivity gains or lower input costs” said Mr. Rajeev Juneja, President PHDCCI.

“Higher prices of petroleum products primarily reflect increased crude oil inventory and refining costs. Since petroleum products constitute a major input for freight transportation, logistics, aviation, power generation and industrial production, sustained increases are expected to raise operating costs across multiple sectors”, he added.

The revised WPI basket has been expanded from 697 to 957 items, incorporating emerging sectors and improving the representation of the evolving structure of the Indian economy. The new series also adopts Gross Value of Output (GVO) as the basis for weights, introduces improved methods for index compilation and missing data imputation, and reorganises the energy basket by placing crude petroleum and natural gas under the Fuel and Power group. Renewable energy sources, including solar and wind, as well as nuclear electricity, have also been incorporated into the index.

Introduction of the revised Wholesale Price Index (WPI) series with base year 2022-23 along with the launch of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI) and Service Producer Price Indices (Service PPIs) is a welcome move, he added.

The chemical industry has experienced rising prices owing to higher feedstock costs linked to crude oil and natural gas, increased prices of imported intermediates and stronger demand from pharmaceuticals, construction materials, automobiles and consumer goods industries.

Food inflation at the wholesale level (5.49% YoY) has increased, reflecting higher prices of processed food products and selected agricultural commodities. However, food price pressures remain considerably lower than energy-related inflation.

“The latest wholesale inflation data indicate that energy and commodity prices continue to be the principal drivers of producer inflation, due to persistent geopolitical challenges, will put pressures on corporate margins in the short term”, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.

The policy introduces fiscal incentives for electric vehicles, exemptions from road tax and registration charges for eligible vehicles, scrappage incentives for older vehicles, a significant expansion of charging infrastructure, and a phased transition towards electric mobility across various vehicle categories. The government has also announced a proposed investment of around ₹15,000 crore to support the development of the EV ecosystem during the policy period.

“The Policy reinforces the role of clean mobility as a key driver of Delhi’s future economic growth and sustainable urban development. By providing greater policy certainty, it is expected to improve the investment climate, accelerate innovation in electric mobility technologies, expand domestic manufacturing, and create employment across the EV ecosystem. At the national level, the Policy aligns with India’s broader objective of strengthening globally competitive manufacturing through the Make in India initiative”, said Rajeev Juneja, President, PHDCCI.

The policy extends well beyond promoting electric vehicle adoption and has the potential to stimulate investments across multiple sectors, including battery manufacturing, charging infrastructure, renewable energy integration, power distribution, electronics, automotive components, software solutions, fleet management, financing, recycling and circular economy services.

Key Highlights & Provisions

The Delhi EV Policy 2.0 (running through 2030) introduces ambitious subsidies, scrappage benefits, and stricter mandates to promote greener transport.

1.      Tax Exemptions: 100% waiver on road tax and registration fees for EVs priced up to ₹30 lakh (ex-showroom).

2.      Purchase Subsidies: Incentives of up to ₹30,000 for electric two-wheelers and up to ₹50,000 for three-wheelers.

3.      Scrappage Incentives: Up to ₹1 lakh incentive for scrapping old BS-IV or older cars.

4.      Deadlines for ICE Vehicles: No petrol motorcycles/scooters can be registered after March 31, 2028, and new CNG auto-rickshaw registrations are set to stop at the end of 2026.

5.      Charging Network: Expanded infrastructure mandates that require every EV dealership to host public charging stations.

“The planned expansion of public charging facilities and battery-swapping infrastructure is expected to stimulate investment across multiple segments of the electric mobility ecosystem. Opportunities are likely to emerge for infrastructure developers, private investors, technology firms, and start-ups engaged in EV-related services. As electric vehicle adoption accelerates, demand is also expected to rise for advanced battery technologies, power electronics, semiconductors, charging hardware, digital payment platforms, predictive maintenance applications, and intelligent energy management solutions”, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.

The policy will deliver important macroeconomic benefits through reduced dependence on imported fossil fuels, lower urban emissions, improved public health outcomes and increased private investment in future-ready industries. The policy is also expected to encourage innovation in electric mobility technologies while supporting India’s commitments towards sustainable development and the transition to a low-carbon economy.

Further, the policy aligns with several national initiatives, including the Production Linked Incentive (PLI) Schemes for the automobile and Advanced Chemistry Cell (ACC) battery sectors, the National Electric Mobility Mission and India’s target of achieving net-zero emissions by 2070. Together, these initiatives can strengthen domestic value addition, enhance supply chain resilience and improve India’s competitiveness in the global EV market.

PHDCCI works closely with policymakers, and industry stakeholders to support effective implementation of the policy and facilitate the development of a robust, competitive and sustainable electric mobility ecosystem that contributes to economic growth, industrial transformation and environmental sustainability.

“The increase in wholesale inflation in April 2026 was largely driven by a sharp rise in energy and petroleum-related prices, which also contributed to higher input costs across several manufacturing segments. In contrast, food-related wholesale inflation remained relatively moderate compared with recent periods of raised volatility said Mr. Rajeev Juneja, President, PHDCCI.”

The WPI Fuel & Power group recorded inflation of 24.71 per cent in April 2026, up from 1.05 per cent in March 2026. Crude petroleum and natural gas inflation rose significantly to 67.18 per cent, while petrol and high-speed diesel inflation increased to 32.40 per cent and 25.19 per cent respectively.

Global Brent crude prices witnessed a high surge reflecting heightened geopolitical risk, supply disruptions, and tightening global energy markets, he added.

Primary Articles inflation increased to 9.17 per cent in April 2026, supported by higher prices of crude petroleum & natural gas, food articles, and minerals. Manufactured Products inflation also strengthened to 4.62 per cent, reflecting broad-based increases across several industrial groups including basic metals, chemicals, textiles, machinery and food products.

On a month-on-month basis, the headline WPI increased by 3.86 per cent in April 2026 over March 2026, with Fuel & Power registering a substantial monthly increase of 18.22 per cent.

The WPI Food Index rose modestly to 2.31 per cent in April 2026 from 1.85 per cent in March 2026. Within food categories, inflation remained contained in cereals and pulses, while prices of vegetables and fruits recorded mixed movements. Onion prices continued to remain lower on a year-on-year basis, while milk and protein-based food items registered moderate increases.

Among manufactured products, inflation in basic metals increased to 7.00 per cent, textiles to 7.30 per cent, and chemicals and chemical products to 5.09 per cent, indicating rising cost pressures across industrial supply chains.

The provisional WPI index for All Commodities stood at 167.0 in April 2026, compared with 160.8 in March 2026. The final WPI inflation rate for February 2026 was revised to 2.26 per cent.

DPIIT stated that the WPI for April 2026 was compiled with a weighted response rate of 96.7 per cent. The provisional figures are subject to revision in line with the established revision policy.

“Going forward, movements in global energy prices, commodity markets, and supply chain conditions will remain important determinants of wholesale price trends. The evolving trajectory of fuel costs and transmission into manufacturing and transport sectors will continue to be monitored closely in the coming months says Dr. Ranjeet Mehta, SG & CEO, PHDCCI

“Among major commodity groups, transport inflation remained subdued at near-zero levels as Government of India has not increased retail pump prices despite Brent crude oil prices remaining above US$ 100 per barrel in the international markets since the East Asia Crisis” said Mr. Rajeev Juneja, President, PHDCCI.

However, precious metal prices recorded comparatively higher inflation rates due to jump in international metal prices and depreciating INR vis-à-vis US dollar, he added. Silver, Gold/Diamond/Platinum Jewellery jumped (y-o-y) 144.34% and 40.72% respectively.

On the other hand, at the food item level, potatoes, onions, motor cars and jeeps, peas and chickpeas, and air conditioners recorded the lowest inflation rates during April 2026.

The moderation reflects relatively stable price conditions across several core consumption categories, particularly transport. However, food price pressures remain elevated in select commodities, indicating the continued importance of supply-side monitoring.

“In India, recently, a deviation between food and non-food inflation trends continues to impact the inflation outlook. Volatility in agricultural commodities, baring seasonal commodities, and precious metals may continue to influence household inflation expectations in the near term,” said Dr. Ranjeet Mehta, SG and CEO, PHDCCI.