Background: This Policy Bite reports the first trial release of the ISP. Readers looking for a detailed explanation of the index, its rationale, methodology and proposed coverage can refer to our earlier explainer, MoSPI Prepares to Launch India’s First Index of Services Production.
April 2026 Snapshot | What It Shows |
|---|---|
Coverage | Trial ISP launched for 19 formal services sub-sectors, representing around 60% of India’s services economy. |
Broad-based growth | 14 of 19 sub-sectors recorded double-digit year-on-year growth. |
Fastest-growing sectors | Accommodation & Food (37.2%), Retail Trade (30.8%), Administrative & Support Services (28.7%), Real Estate (27.7%). |
Weakest performers | Air Transport (–13.9%) and Railway Transport (–0.4%) were the only sectors to contract. |
Statistical innovation | The index combines GST data, administrative records and ASISSE, with WPI/CPI deflators, and will be published monthly while MoSPI develops an aggregate ISP. |
India Fills a Major Gap in Economic Statistics
The Ministry of Statistics and Programme Implementation (MoSPI) has introduced the Trial Index of Services Production (ISP), India’s first monthly indicator designed to measure short-term movements in the formal services sector. With a 2024–25 base year, the index currently covers 19 sub-sectors representing around 60% of the services economy, providing a high-frequency counterpart to the Index of Industrial Production (IIP) for manufacturing.
Initially released on an experimental basis, the ISP is intended to strengthen economic monitoring while allowing MoSPI to refine methodology before launching a comprehensive national services production index.
The First Release Shows Broad-Based Expansion
The inaugural data for April 2026 indicates broad-based growth across formal services. Fourteen of the nineteen sub-sectors recorded double-digit annual growth, with Accommodation & Food (37.2%), Retail Trade (30.8%), Administrative & Support Services (28.7%) and Real Estate (27.7%) emerging as the fastest-growing segments.
Most other sectors also expanded, while Air Transport (-13.9%) and Railway Transport (-0.4%) were the only sub-sectors to record year-on-year declines, illustrating the value of monthly sector-level monitoring in identifying divergent trends.
A Modern Statistical Framework
The ISP also marks a methodological shift in India’s official statistics. Rather than relying primarily on periodic surveys, it integrates GST data, administrative datasets and weights derived from the Annual Survey of Incorporated Services Sector Enterprises (ASISSE), while using WPI and sector-specific CPI deflators to estimate real output.
The trial phase will allow MoSPI to evaluate data quality, improve sectoral coverage and strengthen the statistical framework before introducing an aggregate monthly services production index.
What is the Index of Services Production (ISP)?
The Index of Services Production (ISP) is a monthly indicator that measures changes in output across selected formal services industries, providing timely evidence on short-term movements in the services sector similar to the role played by the Index of Industrial Production (IIP) for manufacturing.
Policy Relevance
Introduces India’s first high-frequency production indicator for the services sector, improving macroeconomic monitoring alongside the IIP and other economic indicators.
Provides policymakers with timely sector-level evidence, enabling quicker assessment of changing economic conditions across services.
Strengthens India’s statistical architecture by integrating GST information, administrative records and enterprise survey data into official statistics.
Creates the foundation for a comprehensive national Index of Services Production, improving measurement of the sector that contributes more than half of India’s GDP.
Demonstrates the growing use of administrative and digital datasets in official statistics, supporting more frequent, granular and evidence-based policymaking.
Follow the Full Release Here: First Release of sub – sectoral Trial Index of Services Production (ISP) (Base Year 2024 -25)