The Ministry of Statistics and Programme Implementation (MoSPI) will launch India’s first monthly Index of Services Production (ISP) on July 14, offering a timely indicator of the country’s services sector. The new index will complement the Index of Industrial Production (IIP) and improve tracking of India’s economic performance.
Key Highlights
- India’s first monthly Index of Services Production (ISP) to be released on July 14.
- Services sector contributes nearly 53% of India’s Gross Value Added (GVA).
- GST, banking, railways, aviation and insurance data will be used to compile the index.
- The trial monthly series will have 2024-25 as the base year.
India is set to achieve a major milestone in economic data collection as the Ministry of Statistics and Programme Implementation (MoSPI) prepares to launch the country’s first monthly Index of Services Production (ISP) on July 14. The new indicator will provide a high-frequency measure of activity in India’s formal services sector, offering policymakers, businesses and investors a clearer picture of economic momentum.
The services sector accounts for nearly 53 per cent of India’s Gross Value Added (GVA) and has become the country’s largest contributor to economic growth, employment, investment and exports. While the Index of Industrial Production (IIP) has long tracked manufacturing and industrial output, the new Index of Services Production will bridge a crucial gap by measuring monthly changes in the services economy.
To compile the index, MoSPI will use aggregated Goods and Services Tax (GST) data shared by the GST Network along with administrative datasets from railways, aviation, banking and insurance. For sectors that are exempt from GST, including health and education, the ministry will use information from the Annual Survey of Unincorporated Sector Enterprises in Services Sector and Establishments (ASISSE). The ministry has clarified that no unit-level GST data will be accessed during the process.
The framework for the new index was developed by the Technical Advisory Committee on Index of Services Production (TAC-ISP), constituted in May 2025 under the chairpersonship of Debjani Ghosh, Distinguished Fellow at NITI Aayog. The committee recommended compiling the ISP as a Laspeyres volume index with 2024-25 as the base year, using Gross Value Added weights and publishing sector-wise indices at the two-digit NIC 2025 level.
Initially, the overall index and sector-wise indices will be released on a trial basis to validate the methodology and gather stakeholder feedback. The committee has also recommended that the ISP be released every month within 60 days of the reference month, making it a valuable tool for monitoring India’s fast-growing services economy.
Conclusion
The launch of the Index of Services Production marks a significant advancement in India’s statistical framework, providing a reliable monthly indicator that will strengthen economic analysis, policy formulation and business decision-making.
FAQs
1. What is the Index of Services Production (ISP) ?
It is India’s first monthly indicator that measures short-term performance in the formal services sector.
2. When will the Index of Services Production be launched ?
The trial monthly series will be launched on July 14.
4. Why is the Index of Services Production important?
It provides a timely measure of India’s services sector, helping policymakers, businesses and investors assess economic trends more effectively.
3. Which data sources will be used to compile the ISP ?
The index will use aggregated GST data, administrative records from railways, aviation, banking and insurance, along with ASISSE data for GST-exempt sectors.
