Government Sets Up Service Sector Monitoring Tool

The Indian government is set to introduce its inaugural Index of Services Production (ISP), with the first edition slated for July 14 following a trial deployment. According to the Ministry of Statistics and Programme Implementation (MoSPI), the index will deliver a detailed, short‑term view of activity across the formal services sector, acting as a counterpart to the Index of Industrial Production (IIP).

Services represent about 53 % of India’s GVA and are a cornerstone of employment, growth, and foreign exchange earnings. The implementation of GST has markedly improved the nation’s statistical infrastructure, enabling the use of monthly outward supply data filed by millions of businesses.

To construct the ISP, MoSPI will merge consolidated GST information with administrative data from railways, airlines, banks and insurers. For GST‑free areas such as health and education, the Annual Survey of Unincorporated Sector Enterprises in Services will be consulted. The ministry clarified it does not access individual GST records.

A technical advisory committee, established in May 2025 and chaired by a Niti Aayog fellow, examined the index’s theoretical and practical dimensions. After issuing a draft paper in April 2026 and seeking public input, the committee recommended a Laspeyres volume index, using 2024‑25 as the base year, with weights based on GVA and NIC 2025 two‑digit classification for sub‑sector indices.

The index and its breakdown will first be released on a trial basis, allowing adjustments based on expert feedback. The final plan is to publish the ISP each month within 60 days of the reporting month’s end, furnishing policymakers, businesses and investors with a reliable, up‑to‑date snapshot of the services landscape.