Index of Services Production Context : The Ministry of Statistics and Programme Implementation (MoSPI) will launch the Index of Services Production (ISP) in July 2026. It is a new monthly indicator to measure the performance of India's services sector, similar to the Index of Industrial Production (IIP) for manufacturing. The ISP was designed by a Technical Advisory Committee (TAC) and will initially be released on a trial basis. About is the Index of Services Production (ISP) A monthly macroeconomic indicator developed by MoSPI. Measures the real (inflation-adjusted) output of India's formal services sector. Serves as the services-sector equivalent of the IIP. Need for ISP The services sector contributes over 50% of India's Gross Value Added (GVA). India lacked a high-frequency monthly index to monitor services sector growth. Fills this important gap in economic data. Objectives Track monthly growth in the services sector. Support economic policymaking and planning. Improve economic forecasting. Complement the IIP for a complete picture of economic activity. Key Features Covers only the formal services sector. Excludes government administration, defence, personal services, gambling, and government-run health & education. Uses a Laspeyres Volume Index with 2024–25 as the base year. Sector weights are based on their Gross Value Added (GVA). About ISP is Measured Measures real service output by adjusting nominal values for inflation. Uses turnover as the primary indicator of output. Converts nominal values into real growth using price deflators such as CPI and WPI. Major Data Sources Administrative data: Railways, Air Transport, Banking, Insurance. GST data: Trade, Transport, Telecom, Hotels, Real Estate, Professional Services, Arts & Recreation. ASISSE: Private Health and Education services. Indicators Used Quantity-based: Railways, Air Transport (e.g., passenger-kilometres). Value-based: Most other services (turnover, sales, GST data). Deflators Used WPI: Wholesale Trade. Sector-specific CPI: Wherever available. CPI General: Banking and Insurance. CPI Non-Food: Other service…
