National News

Release of Sub-Sectoral Trial Index of Services Production (ISP)

August 5 , 2026 5 hrs 0 min 53 0

The Ministry of Statistics and Programme Implementation (MoSPI) has released the country’s first trial Index of Services Production (ISP) for 19 sub-sectors.
It will be the counterpart to the existing Index of Industrial Production (IIP)
It provides, for the first time, a monthly measure of short-term activity in the formal services sector.
The inaugural index, with 2024-25 as the base year, covers April 2026 and accounts for nearly 60 per cent of India’s services sector.
It aims to improve the measurement of India’s services sector and strengthen the country’s statistical system.
It said the comprehensive overall Index of Services Production will be introduced after evaluating the stability of the trial series and expanding its coverage-the first set of data points to broad-based growth in the services sector.
The coverage of the index would expand over time, with the addition of sectors such as health services and ownership of dwelling businesses.
That will take the coverage to around 85 to 90 per cent of formal services sector contribution in the economy.
Fourteen of the 19 sub-sectors recorded double-digit growth in April this year compared to the corresponding month last year, while almost all remaining sectors also registered positive growth.
The fastest-growing sectors are accommodation and food services with 37.2 per cent and Retail Trade with 30.8 per cent.
The index has been developed entirely using administrative data, including inputs from government ministries and GST records, without imposing any additional compliance burden on industries or businesses.
If GST data is not available, a combination of administrative data and the Annual Survey of Incorporated Services Sector Enterprises (ASISSE)
The ISP is an output indicator and should not be equated with the Gross Value Added (GVA) used in GDP estimation.
The ISP currently covers only formal sector enterprises because it is based on GST and administrative data.
Accordingly, services which are not covered in ISP are those which are either related to core government activities or are dominated by non-market activities and the informal sector.
Hence, it excludes non-market government activities, personal services, and the informal sector.
The services sector contributes more than half of the country’s gross value added (GVA).
With the launch of the ISP, all three broad sectors of the economy, services, industry and agriculture, will now have regular monthly or quarterly production indicators.