India's official statistical machinery has finalized the framework for the Index of Services Production (ISP), with the trial monthly series set to be released on July 14, 2025, marking a major step towards improving measurement of the country's services sector. According to the Ministry of Statistics and Programme Implementation (MoSPI), this new index will serve as a comprehensive monthly measure of short-term movements in India's formal services sector and complement the existing Index of Industrial Production (IIP). The launch addresses a significant gap in India's economic monitoring, as policymakers have previously relied solely on the index of industrial production to assess short-term economic conditions, despite manufacturing being outpaced by the services sector.
The index will cover services such as trade, transport, telecom, accommodation, entertainment and real estate, among others, as reported by The Times of India. Data from the Annual Survey of Unincorporated Sector Enterprises in Services Sector and Establishments (ASISSE) will be used to cover GST-exempt sectors such as health and education, ensuring comprehensive coverage of the services sector. The index will be compiled primarily using aggregated GST data shared by the GST network along with administrative datasets from sectors such as railways, aviation, banking and insurance, according to Zee News. MoSPI clarified that it does not access or require unit-level GST data for compiling the index, maintaining data privacy while ensuring accurate measurement. The Technical Advisory Committee on Index of Services Production (TAC-ISP) constituted in May 2025 under the chairpersonship of Debjani Ghosh, Distinguished Fellow at NITI Aayog, held extensive consultations and released an approach paper for public comments before finalizing the methodology.
The Technical Advisory Committee has recommended compiling the index as a Laspeyres volume index with 2024-25 as the base year, using Gross Value Added weights and publishing sector-wise indices at the two-digit NIC 2025 level. As per Zee News, the committee has recommended that the overall and sub-sectoral indices be released initially on a trial basis to gather stakeholder feedback and validate the methodology. The committee also proposed that the ISP be compiled every month and released within 60 days of the reference month, providing policymakers and businesses with a timely indicator of activity in India's services economy. This monthly release schedule will complement the existing IIP data and provide a more comprehensive view of India's economic performance.
The services sector contributes nearly 53% of India's Gross Value Added (GVA), generates substantial employment and has emerged as a key driver of economic growth, investment and exports, according to Zee News. The availability of Goods and Services Tax (GST) data has significantly enhanced India's statistical system by providing monthly information on outward supplies reported by millions of businesses. The panel has been tasked with preparing a detailed methodology and conceptual framework to measure the digital economy, as reported by The Times of India. This initiative aims to address the fast-growing digital segment of the economy that requires specialized measurement approaches, ensuring India's statistical framework remains relevant to evolving economic structures and digital transformation trends.
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