The Ministry of Statistics and Programme Implementation (MoSPI) is set to launch the Index of Services Production (ISP) in July 2026, introducing a new monthly macroeconomic indicator aimed at measuring short-term changes in the growth of India’s services sector. Designed as the services-sector counterpart to the Index of Industrial Production (IIP), the ISP will provide high-frequency data on the performance of formal service industries and strengthen the country’s economic monitoring framework.
The services sector has contributed more than 50 per cent of India’s Gross Value Added (GVA) since 2013-14, making it the largest component of the economy. To support policymaking and align with international practices, MoSPI constituted a Technical Advisory Committee (TAC) on ISP in May 2025 under the chairpersonship of Debjani Ghosh. Following extensive consultations, an approach paper outlining the methodology and framework for the index was released in April 2026 for stakeholder feedback. The TAC report is expected in the first fortnight of July 2026.
The ISP will initially cover key formal-sector service activities, including wholesale and retail trade, transport, banking, insurance, telecommunications, hotels and restaurants, real estate, professional and technical services, and arts and entertainment. Health and education services will be added later after data from the Annual Survey of Incorporated Services Sector Enterprises (ASISSE) becomes available. The base year for the index has been fixed at 2024-25.
MoSPI will release trial monthly indices for 2025-26 and April 2026 on July 14, 2026. Thereafter, monthly trial indices will be published with a lag of around 60 days. The index will draw data from administrative sources, GST returns and ASISSE surveys. GST-based outward supplies data will be used extensively to estimate output across various service industries, while sectors such as air transport and railways will rely on quantity-based indicators.
According to MoSPI, the ISP will provide timely insights into the performance of the services sector, complement the IIP in tracking economic trends, improve economic forecasting and business cycle analysis, and support evidence-based policymaking. The index will be compiled using a fixed-weight Laspeyres volume methodology, with sectoral weights derived from their contribution to GVA.
