Key Details
The Technical Advisory Committee (TAC-ISP) has recommended the statistical framework for compiling India’s first monthly Index of Services Production (ISP), moving the initiative from concept to implementation.
Key Area | Recommendation / Outcome |
|---|---|
Trial release | Experimental ISP series to be released from 14 July 2026 |
Publication frequency | Monthly |
Release timeline | Within 60 days of the reference month |
Base year | 2024–25 |
Methodology | Fixed-weight Laspeyres volume index |
Classification | NIC 2025 at the 2-digit level |
Weighting | Gross Value Added (GVA) weights |
Data architecture | GST data, administrative datasets and enterprise surveys combined |
Coverage | Market services through GST; exempt sectors through alternative administrative sources |
Summary
The Technical Framework Is Now in Place
The Technical Advisory Committee on the Index of Services Production (TAC-ISP) has moved India’s proposed Index of Services Production (ISP) from concept to implementation by recommending its statistical methodology, sectoral coverage, data architecture and dissemination framework. While MoSPI had earlier announced plans to introduce the ISP, the Committee’s report explains how the index will actually be compiled and released.
Among its key recommendations are monthly compilation of sectoral indices, publication of the overall ISP within 60 days of the reference month, and release of an experimental trial series on 14 July 2026. Publishing the index initially on a trial basis will allow stakeholder feedback, methodological validation and comparison with quarterly and annual datasets before regular production begins.
A Hybrid Statistical System Rather Than a Single Data Source
A central recommendation of the report is that the ISP should combine multiple administrative and statistical datasets instead of relying on a single source of information.
GST data would provide extensive coverage of market-based services such as wholesale and retail trade, accommodation, food services, telecommunications, professional services, administrative support and real estate. However, sectors that are largely outside the GST framework—including health, education, significant parts of railways, insurance and public transport—would instead draw upon administrative datasets from sectoral agencies together with future enterprise surveys such as the Annual Survey of Services Sector Enterprises (ASISSE).
The Committee argues that this hybrid approach is necessary because India’s services economy cannot be accurately measured using any single administrative database.
International Standards Adapted to India’s Statistical System
The report recommends compiling the ISP as a fixed-weight Laspeyres volume index using 2024–25 as the base year, with compilation at the 2-digit NIC 2025 level and aggregation using Gross Value Added (GVA) weights.
These recommendations align the proposed ISP with internationally accepted statistical practices while adapting them to India’s institutional context. The report also recommends using sector-specific price deflators and publishing both overall and sub-sectoral indices to improve transparency and analytical usefulness.
Administrative Data Becomes Central to Economic Measurement
Beyond the creation of the ISP itself, the report illustrates a broader transformation in India’s official statistical system. Rather than depending primarily on surveys, it proposes combining GST records, administrative databases and enterprise statistics to generate high-frequency economic indicators.
The Committee also recommends strengthening Service Producer Price Indices (SPPIs), expanding administrative reporting from sectoral regulators, and progressively incorporating additional datasets to improve coverage, quality and international comparability. Together, these measures position the ISP not only as a new economic indicator but also as an important step towards a more modern, digital and administrative-data-driven statistical system.
Earlier, The Policy Edge covered MoSPI’s announcement of India’s proposed Index of Services Production (ISP), explaining its purpose and significance as the services-sector counterpart to the Index of Industrial Production (IIP). The present report outlines the detailed methodology and implementation framework ahead of the trial release.
What is the Index of Services Production (ISP)?
The Index of Services Production (ISP) is a monthly indicator that measures changes in the real output of service industries over time. Similar to the Index of Industrial Production (IIP) for manufacturing, it tracks production volumes rather than prices by combining administrative data, enterprise information and appropriate price deflators. Once operational, it will provide India’s first comprehensive high-frequency measure of activity across the formal services economy.
Policy Relevance
Moves the ISP from proposal to implementation by establishing the statistical methodology, publication schedule and operational framework ahead of the trial launch.
Demonstrates how administrative data—including GST, banking, railways and insurance datasets—is becoming a core input for official economic statistics, reducing dependence on traditional surveys.
Introduces a transparent approach to statistical development by recommending publication of trial indices before regular release, allowing stakeholder validation and methodological refinement.
Recognises that India’s services economy requires a hybrid measurement framework, combining GST data with sector-specific administrative sources and enterprise surveys where tax data are insufficient.
Complements the Index of Industrial Production (IIP) by laying the foundation for a comprehensive monthly assessment of activity across India’s formal economy.
Advances the modernisation of India’s statistical architecture by aligning with international standards while adapting methodology to domestic institutional realities and data availability.
Follow the Full Update Here: Technical Advisory Committee on Compilation of the Index of Services Production (ISP) with Base Year 2024-25