Index of Services Production

The Ministry of Statistics and Programme Implementation is set to launch the Index of Services Production (ISP) in July 2026, marking a significant step towards improving the measurement of India’s services sector performance.

The ISP will serve as the services-sector counterpart of the Index of Industrial Production, which tracks short-term growth trends in the industrial sector. The new index will be released on a monthly basis with 2024–25 as the base year.

What is the Index of Services Production (ISP)?

The Index of Services Production (ISP) is a short-term economic indicator designed to measure changes in the real output of service-producing industries over time relative to a specified base year.

It aims to capture the volume of services produced and provide timely insights into the performance of India’s services sector.

Objectives of ISP

The index has two primary objectives:

1. Tracking Short-Term Economic Trends: To complement the Index of Industrial Production (IIP) by providing a similar high-frequency measure for the services sector.
2. Strengthening Economic Monitoring: To provide policymakers, researchers, and businesses with timely information on service-sector activity for evidence-based decision-making.

Key Features

Feature	Details
Launch	July 2026
Compiled By	MoSPI
Base Year	2024–25
Frequency	Monthly
Time Lag	Approximately 60 days
Coverage	Primarily Formal Services Sector

Data Source

The ISP will be compiled mainly using data on outward supplies reported by enterprises registered under the Goods and Services Tax (GST) system.

As a result, the index will predominantly reflect the formal services economy.

Significance

The services sector contributes more than half of India’s Gross Value Added (GVA), yet the country has lacked a dedicated high-frequency indicator comparable to the IIP.

The ISP is expected to:

• Improve real-time monitoring of economic activity.
• Provide early signals on growth trends in the services sector.
• Strengthen macroeconomic analysis and forecasting.
• Support evidence-based policy formulation.
• Enhance India’s statistical framework.

Services Excluded from ISP 

The excluded sub-sectors include:

• Public Administration and Defence
• Financial Services excluding Banking and Insurance (e.g., Central Bank activities, Money Market Funds)
• Social Work Activities without Accommodation
• Services of Membership Organisations
• Activities of Private Households with Employed Persons
• Activities of Extraterritorial Organisations and Bodies
• Government-provided Health Services
• Government-provided Education Services
• Gambling and Betting Activities

Source: PIB

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