MoSPI to Launch Index of Services Production (ISP): Bridging the Data Gap in India’s Service-Led Economy

The Ministry of Statistics and Programme Implementation (MoSPI) has announced the launch of the Index of Services Production (ISP) scheduled for July 2026. This new monthly macro-indicator is designed to serve as the services-sector counterpart to the Index of Industrial Production (IIP), filling a long-standing data gap in India's economic monitoring framework.

India’s economic structure is unique among developing nations for being service-led, with the tertiary sector contributing more than 50% to the Gross Value Added (GVA). However, while the industrial sector has been tracked monthly through the IIP, the services sector has lacked a high-frequency official volume index. Policymakers have traditionally relied on quarterly GVA estimates or private proxy indicators like the Purchasing Managers' Index (PMI) for Services. The ISP will provide a more granular and timely official assessment of sectoral performance, covering key areas such as trade, transport, communication, and financial services.

The introduction of the ISP is a significant step toward data-driven governance. By providing monthly updates, it will enable the government and the Reserve Bank of India (RBI) to calibrate monetary and fiscal policies with greater precision. For instance, real-time tracking of the services sector can help identify early signs of economic slowdown or overheating, allowing for proactive interventions. Furthermore, as India aims for a $5 trillion economy, the ISP will be crucial in monitoring the growth of high-value services and the impact of global economic shifts on India’s service exports.

Strengthening the statistical architecture is vital for transparency and investor confidence. The ISP will not only aid in better GDP forecasting but also assist businesses in making informed investment decisions based on official sectoral trends. This move aligns with global best practices where advanced economies maintain robust indices for both industrial and service production.