MOSPI proposes expanding Index of Services Production to cover 78% of services GVA
Synopsis
India's statistical authority MOSPI wants to upgrade its fledgling Index of Services Production — currently covering just 60% of services GVA — to nearly 78.4% by pulling in Education, Healthcare, and Public Administration for the first time. For an economy where services drive more than half of all output, this is a meaningful step toward credible, high-frequency economic data.
Key Takeaways
MOSPI published an approach paper on 6 October 2026 to expand the Index of Services Production (ISP) .
Current ISP covers 19 sub-sectors and approximately 60 per cent of services-sector GVA, launched on a trial basis in July 2026 .
Three sectors — Education , Human Health and Residential Care , and Public Administration and Defence — are proposed for inclusion, representing nearly 21 per cent of services GVA.
Expanded coverage would reach approximately 78.4 per cent of total services-sector GVA.
Stakeholders must submit comments by 16 October 2026 to ddgec.esd@mospi.gov.in .
The Ministry of Statistics and Programme Implementation (MOSPI) on Tuesday, 6 October 2026, announced plans to significantly expand the scope of its newly launched Index of Services Production (ISP), publishing an approach paper that outlines a methodology to raise the index's coverage from 60 per cent to approximately 78.4 per cent of India's services-sector Gross Value Added (GVA). The move aims to build a more comprehensive and representative monthly gauge of the services sector, which accounts for more than half of India's national GVA.
What the ISP Currently Covers
The ISP was initiated on a trial basis in July 2026, with 2024–25 as the base year, tracking 19 broad service sub-sectors. It relies on high-frequency administrative data sources and data on outward supplies from the Goods and Services Tax (GST) network, collectively capturing around 60 per cent of services-sector GVA. However, the present framework excludes core government functions, non-market activities, and GST-exempt services — a significant blind spot given the weight of public services in the economy.
Three Key Sectors Being Added
The approach paper identifies three major service areas previously omitted from the index: Education, Human Health and Residential Care, and Public Administration and Defence. Together, these three sectors represent nearly 21 per cent of services GVA for the 2024–25 period. Successfully incorporating them would push the monthly ISP's total coverage to approximately 78.4 per cent of the entire services-sector GVA, enabling the aggregation of sub-sectoral indices into a unified, all-encompassing measure of short-term services activity.
Why This Expansion Matters
India's services sector has firmly established itself as the primary engine of national economic growth, contributing more than half of overall GVA. Yet the absence of reliable, high-frequency data on government services, healthcare, and education has long been a gap in the country's statistical architecture. This expansion, if executed well, would give policymakers, researchers, and financial institutions a sharper, near-real-time view of how the dominant sector of the economy is performing month to month. Notably, this comes as India's statistical agencies face growing scrutiny over data quality and coverage gaps in national accounts.
Stakeholder Consultation Underway
MOSPI has invited views and comments from experts, academicians, central government ministries, state governments, financial institutions, and other stakeholders on the proposed methodology. The approach paper is available on the ministry's official website at www.mospi.gov.in, and comments may be submitted to ddgec.esd@mospi.gov.in by 16 October 2026.
What Comes Next
The consultation window closes on 16 October 2026, after which MOSPI is expected to refine the methodology based on feedback before finalising the expanded framework. A successful rollout would mark a significant upgrade to India's economic data infrastructure, giving the ISP a scope comparable to the industrial output tracker, the Index of Industrial Production (IIP), but for the services-dominant economy.
Frequently Asked Questions
What is the Index of Services Production (ISP)?
The ISP is a monthly index compiled by MOSPI to track short-term movements in India's services sector, with 2024–25 as the base year. It was launched on a trial basis in July 2026 and currently covers 19 broad service sub-sectors, accounting for about 60 per cent of services-sector GVA.
Why is MOSPI proposing to expand the ISP?
The current ISP excludes core government functions, non-market activities, and GST-exempt services, leaving roughly 40 per cent of services GVA unmeasured. MOSPI's expansion aims to plug these gaps and create a more representative gauge of the sector that drives over half of India's national GVA.
Which new sectors are being added to the ISP?
MOSPI proposes to add Education, Human Health and Residential Care, and Public Administration and Defence — three sectors that together represent nearly 21 per cent of services GVA for 2024–25. Their inclusion would raise total ISP coverage to approximately 78.4 per cent of services-sector GVA.
How can stakeholders participate in the consultation?
The approach paper is available on MOSPI's website at www.mospi.gov.in. Experts, academicians, central and state government bodies, financial institutions, and other stakeholders can submit written comments to ddgec.esd@mospi.gov.in by 16 October 2026.
How does the expanded ISP compare to the Index of Industrial Production?
The Index of Industrial Production (IIP) is India's established high-frequency tracker for the manufacturing and industrial sector. The expanded ISP is designed to serve a similar function for services — which are a larger share of the economy — giving policymakers a comparable monthly data tool for the dominant sector of India's GDP.
