India Launches First Monthly Services Production Index

The Ministry of Statistics and Programme Implementation (MoSPI) has introduced the India’s first trial version of the monthly Index of Services Production (ISP). The index has been launched with base year 2024-25 and provides the initial monthly short-term measure of activities undertaken in the formal services industry in India. The index covers 19 sub-sectors and about 60% of India’s services economy and is expected to enhance economic monitoring, help make evidence-based policies, and provide timely information for the businesses and other stakeholders about the performance of the largest sector of the economy.

What is the Index of Service Production (ISP)?

The Index of Services Production (ISP) is a newly developed indicator by MoSPI, which measures monthly changes in the output of the formal services sector in India.

Like the Index of Industrial Production (IIP), which measures manufacturing, mining, and electricity output, the ISP measures short-term performance in key service industries.

The ISP was first introduced as a pilot index and currently covers 19 major service sub-sectors that account for almost 60% of India’s services sector.

The index takes 2024-25 as the base year.

Why Has India Introduced the ISP?

The services sector provides over 50% of the India’s Gross Value Added (GVA), making it important for the economic growth, jobs, and investment.

Up until now, India has not had a specific indicator to measure performance in this sector.

The ISP will be created to,

• Provide timely information on the services sector.
• Make India’s macroeconomic statistics stronger.
• Help to measure the economy in the short-term.
• Aid in evidence-based policymaking.
• Help companies and analysts in better understanding the economy.

Findings From The First Monthly ISP Report

The first report that covers data for the month of April 2026 shows an impressive development of many industries belonging to the service sector.

Summary of Important Information

• 14 out of 19 sectors achieved doubled-digit year-on-year growth.
• Almost all industries reported an increase, as well.
• The report reflects the widespread growth of the formal services.

Highest Performing Industries

• Sub-Sector Growth Rate in April 2026
• Accommodation and Food Services 37.2%
• Retail 30.8%
• Administrative and Support Services 28.7%
• Real Estate 27.7%
• Telecommunication Services 22.8%

Many other sectors such as wholesale trade, banking, insurance, and IT services also showed the noticeable development.

Sectors Which Suffered Decrease

At the same time, although many sectors achieved positive results, two transport-related industries showed decrease in performance.

• Air Transport: -13.9%
• Rail Transport: -0.4%

These decreases contradict with the high growth of many other industries in the service sector.

How Is the Services Production Index Created?

The ISP was created by the MoSPI under the backing of Technical Advisory Committee on Index of Services Production (TAC-ISP) set up in May 2025.

The members of the committee are made up of representatives of,

• Academic institutions
• Industry associations
• Government departments
• Statistical experts

To enhance the accuracy and coverage of the index, multiple credible databases were considered.

Data Sources Used to Determine ISP

For the calculation of the index, MoSPI consolidated a number of official databases.

GST Data

It has been used for the,

• Trade
• Accommodation
• Telecommunications
• Real Estate
• Information Technology (IT) Services

Administrative Records

For,

• Railways
• Air Transportation
• Banking
• Insurance

Survey-Based Data

• Details taken from Annual Survey of the Incorporated Services Sector Enterprises (ASISSE) have also been used to further improve the quality of the index measurement.
• The combination of multiple data sources improves its credibility and reliability.

Monthly Release Schedule

MoSPI has revealed its planning to publish the Services Production Index every month on the 29th.

The regular publishing of the data will help in,

• Quicker evaluation of the situation in the economy.
• More accurate decisions in the process of to creating policies.
• Better preparations for business operations.
• Timely conducting research on the economy.

At the beginning, the index will keep being published only on the experimental basis until the ministry gets feedback and broadens the scope of the coverage.