Key Details
The Index of Services Production (ISP) is being developed as India’s first monthly measure of formal services-sector output, using GST records, administrative datasets and survey-based estimates to improve short-term economic monitoring.
Theme | Key Detail | Why It Matters |
|---|---|---|
New Economic Indicator | Monthly Index of Services Production (ISP) to be launched in July 2026 | Creates a services-sector counterpart to the IIP |
Economic Significance | Services have contributed over 50% of India’s GVA since FY2013-14 | Improves monitoring of the country’s largest economic sector |
Base Year | 2024-25 | Aligns the index with updated statistical series |
Coverage | Trade, transport, telecom, banking, insurance, hospitality, real estate and professional services | Captures major formal-sector service activities |
Data Sources | GST records, administrative databases and ASISSE surveys | Expands use of digital and administrative data in official statistics |
Compilation Method | Fixed-weight Laspeyres volume index using GVA-based weights | Reflects the relative economic importance of different service sectors |
First Release | Trial indices for FY2025-26 and April 2026 to be released on 14 July 2026 | Allows testing before full-scale implementation |
Publication Cycle | Monthly release with approximately a 60-day lag | Provides timely signals on economic activity |
Future Expansion | Health and education services to be incorporated using ASISSE-based indicators | Broadens coverage of the services economy over time |
Summary
India Is Building a Monthly Tracker for Its Largest Economic Sector
MoSPI is preparing to launch the Index of Services Production (ISP), a new high-frequency economic indicator designed to measure changes in the real output of India’s formal services sector. The index will function as a services-sector counterpart to the Index of Industrial Production (IIP), helping policymakers, researchers and businesses track short-term economic trends in a sector that contributes more than half of India’s Gross Value Added.
The first experimental release is scheduled for 14 July 2026, with regular monthly dissemination expected thereafter.
A Long-Standing Statistical Gap Is Being Addressed
While India has long tracked industrial output through the IIP, there has been no equivalent monthly measure for services-sector production despite the sector’s dominant contribution to economic activity.
The ISP seeks to fill this gap by providing a consistent measure of output across key service industries, enabling policymakers to monitor business-cycle movements, assess sectoral performance and improve short-term economic forecasting.
GST Data Will Form the Backbone of the New Framework
A key innovation of the ISP is its use of GST-based transaction data to estimate service-sector output.
For many services, production and consumption occur almost simultaneously, making turnover a useful proxy for economic activity. MoSPI will use aggregated Service Accounting Code (SAC) data from GST returns and map them to industry classifications to estimate output across sectors such as trade, telecommunications, road transport, warehousing, real estate and professional services.
These data will then be adjusted for price changes to estimate real growth rather than nominal revenue increases.
Different Sectors Require Different Measurement Approaches
The ISP combines multiple data sources and methodologies depending on the nature of the service activity.
Some sectors, such as air transport and railways, can be measured using physical indicators like passenger traffic and freight volumes. Other sectors rely on GST and administrative data, while activities with limited GST coverage—particularly private health and education services—will eventually be incorporated through the Annual Survey of Incorporated Services Sector Enterprises (ASISSE).
This blended approach aims to improve both coverage and statistical reliability.
The Index Will Primarily Measure the Formal Services Economy
Because the ISP relies heavily on GST and administrative records, it will primarily capture activity within the formal services sector.
Several activities, including public administration, defence, central banking functions and many informal services, remain outside the scope of the index. As a result, the ISP should be viewed as a measure of formal-sector production rather than a complete representation of India’s entire services economy.
Trial Releases Will Help Refine the Methodology
MoSPI has emphasised that the initial releases will be experimental.
The ministry notes that GST data are being used for statistical applications of this scale for the first time, and some underlying datasets are still evolving. The trial phase will therefore help assess the robustness, consistency and resilience of the methodology before the ISP becomes a fully established component of India’s official statistical architecture.
Policy Relevance
Addresses a major gap in India’s statistical system by creating a dedicated high-frequency indicator for the services sector.
Strengthens economic monitoring in a sector that contributes more than half of national output.
Expands the use of GST and administrative data for official statistical compilation and economic measurement.
Provides policymakers with earlier signals on changes in economic activity, demand conditions and business-cycle trends.
Supports evidence-based policymaking by enabling more frequent assessment of sectoral performance.
Creates a pathway for broader services-sector measurement, including health and education services, as new datasets mature.
Enhances India’s statistical infrastructure by bringing services-sector monitoring closer to the sophistication already available for industry and manufacturing.
Improves economic forecasting and policy analysis by providing a more complete picture of short-term growth dynamics.
Follow the Full Release Here: FAQs on Index of Services Production – Trial Indices with Base year 2024 -25