The first monthly Index of Services Production (ISP) will be launched by India’s Ministry of Statistics and Programme Implementation (MoSPI) on July 14, marking a significant achievement in economic data collecting for the nation. The new indicator would give policymakers, entrepreneurs, and investors a better view of the economic momentum in India by providing a high-frequency measure of activity in the formal services sector.
Nearly 53% of India’s GVA comes from the services sector, which has grown to become the most important driver of economic growth, employment, investment, and exports for the nation. The new Index of Services Production will fill a critical need by tracking developments in the services economy on a monthly basis, while the Index of Industrial Production (IIP) has traditionally tracked manufacturing and industrial output.
The index will be put together by MoSPI using administrative statistics from railways, aviation, banking, and insurance, as well as aggregated Goods and Services Tax (GST) data shared by the GST Network. The ministry has made it clear that they would not be accessing GST data at the unit level during this procedure.
The Technical Advisory Committee on Index of Services Production (TAC-ISP), established in May 2025 and chaired by Debjani Ghosh, Distinguished Fellow at NITI Aayog, laid the groundwork for the new index. The committee’s recommendation was to issue sector-wise indices at the two-digit NIC 2025 level and to use Gross Value Added weights to compile the ISP as a Laspeyres volume index with 2024-25 as the base year.
To validate the methodology and gather stakeholder feedback, the overall index and sector-wise indices will initially be issued on a trial basis. In addition, the committee has suggested monthly releases of the ISP within 60 days of the reference month, which would make it a useful tool for tracking India’s rapidly expanding service sector.
Image: MInt
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