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Informist, Wednesday, Jun. 24, 2026

 

--MoSPI: To release Index of Services Production on a trial basis on Jul 14 

--MoSPI: Trial Index of Services Production to have FY25 as base year 

--MoSPI: To release Index of Services Production for April, FY26 on Jul 14 

 

NEW DELHI – To measure the short-term changes in the growth of the services sector, the Ministry of Statistics and Programme Implementation will Jul. 14 launch an Index of Services Production on a trial basis. The new index, which has 2024-25 (Apr-Mar) as the base year, will be released for April and FY26, the ministry said Wednesday.

 

"As counterpart of the IIP (Index of Industrial Production) which measures the economic growth of the industrial sector, ISP (Index of Services Production) will cover the formal services sector and will be release on a monthly basis," the ministry said in a release.

 

The aim of the Index of Services Production is to provide more timely insights into the services sector and will focus on high-frequency information on the performance of the sector. The index holds significance as the services sector contributes more than half of India's GDP.

 

The ministry in May 2025 constituted a Technical Advisory Committee for the compilation of the services production index, under Debjani Ghosh, distinguished fellow, NITI Aayog. In April, the ministry had released an approach paper comprising detailed methodological approach and framework for compilation of the new index, which had proposed the use of aggregated goods and services tax data for the compilation.

 

The ministry will release the report of the Technical Advisory Committee on the Index of Services Production in the first fortnight of July, which will cover the scope and coverage, conceptual and methodological framework for compilation of the index.

 

"MoSPI envisages to release an overall ISP along with sub–sectoral indices on a trial basis," the ministry said. "The sectoral coverage of ISP includes sub sectors like wholesale and retail trade, transport, banking, insurance, telecommunications, hotels & restaurants, real estate, professional, scientific and technical services, arts, entertainment & recreation, etc."

 

The ministry aims to bring the health and education services sectors into the index framework later, after the results of the Annual Survey of Incorporated Services Sector Enterprises are released. 

 

While the first Index of Services Production will be released on Jul. 14, the ministry will thereafter release the monthly trial indices with a lag of about 60 days on the 29th day of every month.

 

Historically, the compilation of a services production index faced several challenges such as limited availability of administrative datasets covering service-producing industries. "Unlike manufacturing, where production can often be measured through physical quantities of goods produced, services are largely intangible and many service activities do not have directly observable output measures," the ministry said. 

 

Over the last decade, significant improvements have taken place in India's statistical and administrative data ecosystem, making compilation of ISP feasible, the ministry said. The index has become feasible now thanks to the availability of high-frequency GST data on outward supplies of service-producing units and the start of the Annual Survey of Incorporated Services Sector Enterprises, the ministry added.

 

"MoSPI will utilize three main data sources for ISP namely administrative data, GST and ASISSE (Annual Survey of Incorporated Services Sector Enterprises)," the ministry said. "As some of these sources are still evolving and GST data will be used for the first time in statistical applications, trial or experimental ISP indices will be released for some time to observe their stability and resilience. Thereafter, regular compilation and dissemination will take place."

 

The Index of Services Production will not cover the informal services sector and will primarily reflect the formal sector. Some of the services excluded from the index as of now include public administration and defence; financial services activities of the Reserve Bank of India, and money market funds; activities of private households with employed persons; and gambling and betting activities.  End

 

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

 

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