- The Government of India has achieved a significant milestone in strengthening the country’s statistical system by launching the first Trial Index of Services Production (ISP).
- Introduced by the Ministry of Statistics and Programme Implementation (MoSPI), the new index provides, for the first time, a monthly measure of short-term activity in India’s formal services sector.
- Using 2024–25 as the base year, the trial series currently covers 19 major service sub-sectors, representing nearly 60% of the country’s formal services economy.
What is the Index of Services Production (ISP)?
The Index of Services Production (ISP) is a new monthly economic indicator developed by MoSPI to measure the output of India’s formal services sector. Similar to the Index of Industrial Production (IIP) for manufacturing, the ISP aims to provide timely insights into the performance of service industries.
Initially launched as a trial series, the government plans to expand its coverage after evaluating the stability and reliability of the data.
April 2026 Performance
The first monthly data shows encouraging growth across India’s services economy.
Fastest Growing Sectors
| Sector | Growth |
|---|---|
| Accommodation & Food Services | 37.2% |
| Retail Trade | 30.8% |
Among the 19 covered sectors:
- 14 sectors recorded double-digit growth.
- Almost all remaining sectors also reported positive growth.
These figures indicate broad-based expansion across the formal services sector.
Developed Using Administrative Data:
According to MoSPI Secretary Dr. Saurabh Garg, the index has been developed using existing administrative datasets, including:
- GST records
- Government ministry databases
- Official administrative information
Since the data is already available with government departments, businesses will not face any additional reporting requirements.
ISP Is Different from GDP:
Dr. Garg clarified that the Index of Services Production (ISP) is an output indicator and should not be confused with Gross Value Added (GVA) used for calculating India’s GDP.
While GDP measures value added across the economy, the ISP focuses specifically on tracking the monthly production trends in the formal services sector.
Coverage Will Expand Further
Chief Economic Advisor Dr. V. Anantha Nageswaran described the current release as a trial series, encouraging experts and stakeholders to review and provide feedback.
He also announced that additional sectors such as:
- Health Services
- Ownership of Dwellings
will be included in future editions.
Once expanded, the ISP is expected to cover nearly 85–90% of India’s formal services sector.
Why the ISP Matters
The introduction of the ISP marks a major advancement in India’s statistical ecosystem.
Key Benefits
- Monthly tracking of services sector performance.
- Better economic policymaking.
- Improved economic forecasting.
- Reliable measurement using GST-based administrative data.
- Stronger transparency in official statistics.
Conclusion:
The launch of India’s first Trial Index of Services Production (ISP) represents an important step toward modernising the country’s economic measurement framework. With strong initial growth across major service industries and plans for broader coverage, the ISP is expected to become one of India’s most important monthly economic indicators in the coming years.
FAQ
Q1: What is the Index of Services Production (ISP)?
Ans: The ISP is India’s first monthly index that measures production in the formal services sector.
Q2: Who launched the ISP?
Ans: The Ministry of Statistics and Programme Implementation (MoSPI).
Q3: How many sectors are covered?
Ans: The trial series covers 19 service sub-sectors.
Q4: What is the base year?
Ans: 2024–25
Q5: Which sector recorded the highest growth?
Ans: Accommodation and Food Services grew 37.2%, followed by Retail Trade at 30.8%.