MoSPI Releases Report on Index of Services Production (ISP) with Base Year 2024-25

The Ministry of Statistics and Programme Implementation (MoSPI) has released the report of the Technical Advisory Committee on the Index of Services Production (ISP), it is important step towards strengthening the India’s economic statistics. With the base year fixed at 2024-25, the proposed ISP will serve as the high-frequency monthly indicator to measure the performance of the country’s services sector, which contributes nearly to the 53% of India’s Gross Value Added (GVA). It is scheduled for a trial release on 14th of July, 2026.

What Is the Index of Services Production (ISP)?

The Index of Services Production (ISP) is the proposed monthly economic indicator which will measure short-term changes in the output of the India’s formal services sector.

It is designed to,

Track monthly performance of the services sector
Complement with the existing Index of Industrial Production (IIP)
Provide policymakers with the timely economic data
Improve monitoring of India’s largest economic sector
Strengthen evidence-based policy decisions

For the first time, India will have a comprehensive monthly index which will covering the formal service-sector production.

Why Is the ISP Important?

The services sector has become the backbone of the Indian economy.

According to MoSPI,

It contributes nearly to the 53% of India’s Gross Value Added (GVA)
It generates significant employment
It also drives investment and exports
Plays the central role in India’s economic growth

As the industrial production has long been tracked through the IIP, there has been no comparable monthly indicator for the services sectors. The ISP fills this important gap by offering the high-frequency economic data.

Key Features of the Proposed ISP

The Technical Advisory Committee has recommended the several important features for the new index.

Base Year: 2024-25

This new base year reflects the latest economic structure and it ensures more accurate measurement of service-sector performance.

Index Methodology

The report recommends the,

Laspeyres Volume Index methodology
Compilation at the 2-digit NIC 2025 level
Aggregation using Gross Value Added (GVA) weights

This internationally accepted methodology will ensure the consistency, comparability, and statistical reliability.

Monthly Compilation

The ISP will be compiled every month, it will released within 60 days of the reference month and it initially published on a trial basis.

The trial phase will allow the experts and stakeholders to validate the methodology and it suggest improvements before full-scale implementation.

Data Sources for the ISP

One of the most major aspects of the ISP is its innovative use of the multiple administrative datasets.

1. GST Data

The Goods and Services Tax (GST) system forms the primary data source for market-based services.

Every month, there are millions of businesses submit GST returns detailing their outward supplies.

These records helps to estimate service-sector production because,

Many services are produced and consumed simultaneously
GST data reflects the real business activity
No additional reporting burden is imposed on businesses

For ISP compilation,

MoSPI receives only aggregated GST data and it does not access individual taxpayer information.
This approach will ensures both efficiency and data privacy.

2. Administrative Data

Certain services are also exempt from GST and therefore require alternative sources.

These include sectors such as the,