The Ministry of Statistics and Programme Implementation (MoSPI) will launch the Index of Services Production (ISP) in July 2026, introducing a monthly indicator to measure short-term growth in India’s formal services sector. The new index will serve as a services-sector counterpart to the Index of Industrial Production (IIP), providing policymakers, businesses and economists with timely data on economic activity.
Key Highlights
✅ MoSPI to launch the Index of Services Production (ISP) in July 2026.
✅ ISP will track monthly growth trends in India’s formal services sector.
✅ The index will complement the Index of Industrial Production (IIP).
✅ Services sector contributes over 50% of India’s Gross Value Added (GVA).
In a major step towards strengthening India’s economic data ecosystem, the Ministry of Statistics and Programme Implementation (MoSPI) has announced that it will launch the Index of Services Production (ISP) in July 2026. The new index will provide a monthly measure of short-term changes in the output of India’s formal services sector, offering policymakers and businesses a valuable tool to monitor economic activity more effectively.
To facilitate understanding of the new statistical indicator, the Ministry has also released a detailed Frequently Asked Questions (FAQ) booklet explaining the concept, methodology, objectives and significance of the Index of Services Production.
The ISP is designed as a short-term economic indicator that measures changes in the volume of output produced by service-sector industries relative to a specified base period. It captures variations in the real output of service-producing industries over time and provides a comprehensive view of the performance of the formal services economy on a monthly basis.
The introduction of the ISP is particularly significant because the services sector has become the largest contributor to the Indian economy, accounting for more than 50 percent of the Gross Value Added (GVA) since 2013-14. The sector encompasses a wide range of activities, including financial services, information technology, transportation, communication, trade, hospitality and professional services, making it a key driver of economic growth and employment.
According to the Ministry, the ISP will function as the services-sector equivalent of the Index of Industrial Production (IIP), which currently tracks monthly performance in manufacturing, mining and electricity sectors. While the IIP has long served as an important indicator of industrial activity, there has been no comparable high-frequency measure for the services sector despite its growing contribution to the economy.
The need for a dedicated services production index has become increasingly important as India’s economic structure continues to evolve. The government noted that the launch of the ISP aligns with international best practices and reflects the country’s commitment to improving economic measurement and statistical transparency.
One of the primary objectives of the ISP is to provide high-frequency information on the performance of service industries, enabling policymakers to better understand short-term economic trends and take timely policy decisions. The index will strengthen India’s existing statistical framework and support analytical and policy planning processes.
The Ministry highlighted that the ISP will complement existing economic indicators by offering a clearer picture of overall economic activity. Together with the IIP, it will help provide a more comprehensive assessment of growth patterns across both industrial and service sectors.
The new index is also expected to support evidence-based policymaking by providing timely and reliable information on services sector performance. Government agencies, economists, financial institutions and businesses will be able to use the data to assess market conditions, identify emerging trends and formulate appropriate strategies.
Additionally, the ISP will serve as a valuable tool for economic forecasting and business cycle analysis. The availability of monthly time-series data on services sector output will help analysts improve growth projections, assess economic momentum and better understand cyclical fluctuations in the economy.
Experts believe that the introduction of the Index of Services Production represents a significant advancement in India’s statistical infrastructure and will enhance the country’s ability to monitor and manage economic development in an increasingly services-driven economy.
As India continues its journey toward becoming a developed economy, the ISP is expected to play an important role in providing timely insights into one of the country’s most dynamic and rapidly expanding sectors.
Conclusion
The launch of the Index of Services Production in July 2026 marks a major milestone in India’s economic data and policy framework. By providing monthly insights into the performance of the services sector, the ISP will strengthen economic monitoring, improve forecasting capabilities and support informed decision-making in an economy where services account for more than half of total Gross Value Added.
FAQ:
What is the Index of Services Production (ISP)?
The ISP is a monthly economic indicator that measures changes in the output of India’s formal services sector relative to a base period.
When will the ISP be launched?
The Ministry of Statistics and Programme Implementation will launch the ISP in July 2026.
Why is the ISP important?
The ISP provides high-frequency data on the services sector, which contributes more than 50 percent of India’s Gross Value Added (GVA).
