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Informist, Tuesday, Oct. 6, 2026

 

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--MoSPI invites comments on expanding scope of Index of Services Production
--MoSPI moots including education, human health under svcs production index
--MoSPI moots including public admin, defence under svcs production index
--MoSPI:Covering 3 more sectors to bring 80% svcs under svcs production index
--MoSPI: Seek views on expanding scope of Index of Svcs Production by Oct 16
 

 

NEW DELHI – The Ministry of Statistics and Programme Implementation Tuesday said it is aiming to add education, human health and residential care, and public administration and defence services under the Index of Services Production. The ministry has sought comments by Oct. 16 on adding these three more services.

 

Together, these three sectors represent nearly 21% of services gross value added in 2024–25 (Apr-Mar), the ministry said in a release. The proposed framework will increase the services production index coverage to approximately 78.4% of services-sector gross value added, it said.

 

The ministry has released an approach paper on expanding the scope and coverage for the Index of Services Production. The principal objectives of the approach paper include identifying reliable monthly or high-frequency indicators of output for these services and, where necessary, distinguishing between public and private components and their data sources. The ministry aims to "identify appropriate deflators for converting nominal indicators into measures of real service production for these sub-sectors and to enable aggregation of the expanded sub-sectoral indices into an overall ISP."

These services are currently excluded from the index because of their non-market, goods-and-services tax-exempt, or predominantly public-sector character, the ministry said. The statistics ministry released an experimental services index on Jul. 14 to track India's formal sector, tracking GST, the Annual Survey of Incorporated Services Sector Enterprises, and administrative data. The indices, with FY25 as the base year, cover 19 broad service sub-sectors accounting for nearly 60% of services-sector gross value added. 

 

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

 

In the paper, the ministry has advocated a "hybrid indicator framework" to cover these services. For market-oriented activities, service activities can be measured through transaction- or expenditure-based indicators using data from the National Payments Corporation of India. Non-market or public services can be tracked through production costs using central government services from the Public Financial Management System and state government services from State Account Reports. 

 

However, using unified payments interface data and expenditure data has certain limitations. "UPI captures monetary transactions rather than physical output... UPI Transactions do not distinguish between payments made to public or private institutions," the paper said. The ministry also said administrative expenditure data may exhibit substantial month-to-month fluctuations because of accounting and payment cycles due to quarterly or annual periodicity.

 

Separate monthly data on expenditure by states on educational and health institutions are not available in the State Accounts with the Comptroller and Auditor General of India. "Thus, for public segment component of ISP (Index of Services Production) of these two subs–sectors, data of only the central government, available through PFMS (Public Financial Management System), is proposed to be used as a broad directional indicator, due to unavailability of data of expenditure by state government on its institutions with a monthly frequency," the paper said.  End

 

Reported by Shweta

Edited by Saji George Titus

 

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