India's first Index of Services Production to launch trial run on 14 July
Synopsis
India is plugging a decades-old data gap: the country's first Index of Services Production goes live on 14 July, offering monthly readings on a sector that drives 53% of GVA but has never had its own high-frequency output tracker. Built on GST network data and administrative records, the ISP could reshape how the RBI, investors, and policymakers read India's economy in real time.
Key Takeaways
MoSPI will release India's first Index of Services Production (ISP) on a trial basis on 14 July .
The ISP will be a monthly Laspeyres volume index with 2024-25 as the base year, published within 60 days of the reference month.
The services sector contributes nearly 53% of India's Gross Value Added (GVA) .
Primary data sources include aggregated GST Network data and administrative datasets from railways, aviation, banking, and insurance.
GST-exempt sectors like health and education will be covered using the ASISSE survey.
The framework was developed by the TAC-ISP , chaired by Debjani Ghosh of NITI Aayog , constituted in May 2025 .
The Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday, 7 July announced that India's first Index of Services Production (ISP) will be released on a trial basis starting 14 July, marking a landmark step in measuring the country's services sector — which contributes nearly 53% of India's Gross Value Added (GVA). The monthly index will complement the existing Index of Industrial Production (IIP), filling a long-standing gap in India's macroeconomic data architecture.
What the ISP Will Measure
For the first time, the ISP will provide a comprehensive monthly snapshot of short-term movements in India's formal services sector, covering activities ranging from banking and insurance to aviation and railways. The index is designed as a Laspeyres volume index with 2024-25 as the base year, using Gross Value Added (GVA) weights and publishing sector-wise indices at the two-digit NIC 2025 level.
The index will be compiled every month and released within 60 days of the reference month, giving policymakers and businesses a timely, high-frequency indicator of services activity.
Data Sources Behind the Index
A key enabler of the ISP is the availability of Goods and Services Tax (GST) data. According to MoSPI, aggregated GST data shared by the GST Network — covering outward supplies reported by millions of businesses — will serve as a primary input. The ministry clarified that it does not access or require unit-level GST data.
Administrative datasets from sectors such as railways, aviation, banking, and insurance will supplement the GST figures. To capture GST-exempt sectors like health and education, MoSPI will draw on the Annual Survey of Unincorporated Sector Enterprises in Services Sector and Establishments (ASISSE).
The Committee Behind the Framework
MoSPI constituted a Technical Advisory Committee on Index of Services Production (TAC-ISP) in May 2025 under the chairpersonship of Debjani Ghosh, Distinguished Fellow at NITI Aayog. The committee conducted extensive consultations on conceptual, methodological, and operational aspects of the index.
An approach paper was released for public comments in April 2025 before the final report was prepared. The final report recommends that the overall and sub-sectoral indices be released initially on a trial basis to gather stakeholder feedback and validate the methodology.
Why This Matters for India's Economy
India's services sector is not just the largest contributor to GVA — it is also a significant driver of employment, investment, and exports. Yet, until now, no dedicated monthly production index existed to track its real-time performance. The IIP, which tracks industrial output, left the services economy largely unmeasured at a high frequency.
This comes amid growing demand from investors, central bankers, and international organisations for more granular and timely data on India's economic trajectory. The Reserve Bank of India (RBI) and global credit rating agencies have long flagged the absence of a services production index as a data gap. With the ISP, India joins a select group of economies that publish monthly services output measures.
Point of View
But the 60-day release lag means the index will always be a lagging rather than a leading indicator. The real test will come when trial data reveals whether GST coverage is broad enough to capture the informal services economy, which ASISSE data can only partially proxy. If the methodology holds up to stakeholder scrutiny, the ISP could become as foundational to Indian macroeconomic analysis as the IIP — but that credibility has to be earned through transparent revision policies and consistent release discipline.
NationPress
7 Jul 2026
Frequently Asked Questions
What is India's Index of Services Production (ISP)?
The Index of Services Production (ISP) is India's first dedicated monthly measure of output in the formal services sector, set to be released on a trial basis from 14 July. It is structured as a Laspeyres volume index with 2024-25 as the base year and will complement the existing Index of Industrial Production (IIP).
Why is the ISP significant for the Indian economy?
The services sector contributes nearly 53% of India's Gross Value Added (GVA) and is a key driver of employment and exports, yet no monthly production index existed for it until now. The ISP fills this data gap, giving policymakers, investors, and the RBI a high-frequency indicator of services activity.
What data sources will be used to compile the ISP?
MoSPI will use aggregated GST data from the GST Network, along with administrative datasets from railways, aviation, banking, and insurance. GST-exempt sectors such as health and education will be covered using data from the Annual Survey of Unincorporated Sector Enterprises in Services Sector and Establishments (ASISSE).
How often will the ISP be released and with what time lag?
The ISP will be compiled every month and released within 60 days of the reference month. Initially, the overall and sub-sectoral indices will be published on a trial basis to gather stakeholder feedback and validate the methodology.
Who developed the framework for the ISP?
MoSPI constituted the Technical Advisory Committee on Index of Services Production (TAC-ISP) in May 2025, chaired by Debjani Ghosh, Distinguished Fellow at NITI Aayog. The committee held extensive consultations and released an approach paper for public comments in April 2025 before finalising the report.
