MoSPI releases first trial Index of Services Production

The Index of Services Production: what happened?

Services are more than half of India’s economy, yet for years there was no monthly index of services output. Industry had the IIP; services had to wait for quarterly GDP. The ISP fills that gap. It is a trial series for now, so MoSPI can test its quality before an overall index comes later.

• 14 of the 19 sub-sectors recorded double-digit growth in April 2026 over April 2025.
• Top growers: Accommodation and Food (37.2%), Retail Trade (30.8%), Administrative and support services (28.7%), Real Estate (27.7%).
• Air Transport fell 13.9% and Railway Transport 0.4%.
• A Technical Advisory Committee (TAC-ISP), set up in May 2025, guided the method; its report came out on 7 July 2026.
• An overall ISP will follow after the sub-sector indices prove stable.

How is the ISP compiled?

• Scope: Sections G to V of the National Industrial Classification (NIC), 2025.
• Only formal sector enterprises are covered, because the data come from GST and administrative records; core government and non-market or informal activities are left out.
• Administrative data: air, rail and water (freight) transport, banking and insurance.
• GST data: trade, repair, accommodation and food, road transport, telecom, real estate, IT and professional services, and others.
• Weights: Annual Survey of Incorporated Services Sector Enterprises (ASISSE).
• Deflators: WPI for wholesale trade; sub-sector or proxy CPI for others; CPI-General for repair, banking and insurance; CPI-Services where no match exists.

What do the numbers show?

How does a monthly ISP get made?

1. Collect GST returns and administrative data for each sub-sector
2. Deflate values with WPI or the matching CPI to get real output
3. Weight sub-sectors using ASISSE
4. Publish 19 sub-sector indices on the 29th of each month
5. Later: an overall ISP once coverage and stability improve

Why does the Index of Services Production matter?

What are the challenges in the Index of Services Production?

• Covers only about 60% of services and only the formal sector.
• Railways, banking and insurance indices use provisional data and will be revised yearly.
• A trial series may show large swings while methods settle.
• No overall services index yet.

What should be done next on the Index of Services Production?

• Widen coverage beyond 19 sub-sectors and 60% of services.
• Publish an overall ISP once sub-sector indices prove stable.
• Invite user feedback, as MoSPI plans, and refine deflators.

What can Prelims ask on the Index of Services Production?

• ISP: MoSPI; trial; base year 2024-25; first release for April 2026.
• 19 sub-sectors; about 60% of services; formal sector only.
• Released on the 29th of every month.
• Scope: NIC 2025 Sections G to V.
• Sources: GST, administrative data, ASISSE weights.

How to write about the Index of Services Production in Mains

Practice question (10 marks, 150 words): High-frequency data on services has long been a gap in India’s statistical system. Discuss the significance and limitations of the new Index of Services Production.

• Intro: services over half of activity; no monthly index till now.
• ISP design: 19 sub-sectors, GST data, base 2024-25.
• Significance: timely policy, statistical reform.
• Limits: formal only, 60% coverage, trial.
• Conclusion.