Govt set to launch monthly production index in July to track services growth
New Delhi, June 24
The Ministry of Statistics and Programme Implementation on Wednesday said it will launch the Index of Services Production in July 2026 to provide a monthly measure of short‑term changes in the growth of formal services sector, and released a detailed FAQ booklet to assist users.
The Index of Services Production (ISP) is a short-term indicator designed to measure changes over time in the volume of output produced by the services sector relative to a specified base period.
It measures changes in the real output of service-producing industries over time, the official statement said in the FAQ.
The ISP will act as a counterpart to the Index of Industrial Production, covering formal services on a monthly basis.
On the necessity of ISP, the statement said, the services sector has emerged as the dominant force in the Indian economy, contributing over 50 per cent of the Gross Value Added since 2013-14.
Considering its growing importance and potential, and in line with global practices, India needs a short-term indicator to measure the growth of the services sector to enable planners and policymakers to take suitable measures and guide its growth trajectory.
On objectives of ISP, the statement said it can provide economic trends that would complement an IIP on the short - term movement of an economy.
High frequency information on the performance of the services sector to strengthen the existing statistical framework to support analytical and policy framework is another objective, the statement added.
ISP will provide timely information on the performance of services industries, thereby, strengthening monitoring of economic activity and supporting evidence-based policy decisions.
ISP will also serve as a high-frequency indicator of services sector growth and will provide time series data to enable better economic forecasting and business cycle analysis.
— IANS
Reader Comments
Only covers formal services though. What about the informal sector - the chaiwalas, small traders, domestic workers? They contribute massively too. Hope future versions include them. Still, good first step.
As someone working in analytics, this is huge. Monthly data means better forecasting for businesses and investors. But will it be released on time? Our GDP data often comes with delays. Let's hope MoSPI maintains punctuality.
The IT/ITeS sector alone drives major growth. Will ISP capture data from startups too? Many are unregistered. Also, what about gig economy workers? They're part of services but often invisible in data. Good initiative though; data is power. 💪
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.
R Rajan Q (Nisha's uncle, visiting from UK) Similar indices exist in UK and US for years. Glad India is catching up. The FAQ booklet is thoughtful - transparency matters. Let's see how base year selection is done. 2013-14 might be outdated though. S Siddharth J (economist) Critical for business cycle analysis. But one concern: how will they handle seasonal variations? Tourism, retail spikes during festivals. If not adjusted properly, data could be misleading. Hope MoSPI has robust seasonal adjustment methods.