India is set to launch its first official monthly headline Index of Services Production (ISP) within the next few months, according to Statistics Secretary Saurabh Garg. As reported by Business Standard, Garg confirmed that the ministry is assessing whether to include additional sectors such as health and education before launching the composite index, though the timeline will depend on the availability of reliable data. The proposed index will provide India's first official monthly measure of output across the services sector, complementing existing manufacturing indicators such as the Index of Industrial Production and PMI surveys. The ministry is considering whether to initially launch the headline index using the existing 19 sub-sectors covering about 60% of the formal services economy, while work continues to expand coverage beyond this current threshold.
The trial ISP revealed robust performance across the services sector, with 14 of the 19 sub-sectors posting double-digit growth in April 2026 over April 2025. As reported by PTI, accommodation and food services recorded the fastest growth at 37.2 per cent, followed by retail trade at 30.8 per cent, administrative and support services at 28.7 per cent, and real estate activities at 27.7 per cent. According to PTI, the top sub-sectors reporting strong growth in April were 'accommodation and food' (37.2 per cent), retail trade (30.8 per cent), administrative and support services (28.7 per cent) and real estate (27.7 per cent). The strong performance indicates broad-based expansion across the formal services sector. However, only railway and air transport posted a decline in April, with air transport declining 14 per cent compared to a 4.5 per cent increase in the corresponding period last year, as noted by Business Standard. Among the few sectors to record a decline were air transport, which contracted 14 per cent, compared to a 4.5 per cent increase in the corresponding period last year.
The launch of ISP comes as India's services sector has emerged as the largest contributor to GDP, contributing over 50 per cent of Gross Value Added (GVA) since 2013-14, with services GVA share standing close to 52.9 per cent in 2024-25. According to an official factsheet, the sector accounts for 30 per cent of total employment across India and generated 40 million jobs over the past six years. India's services exports maintained strong momentum in FY2026-27, with services exports estimated at $103.41 billion in April-June 2026-27, registering a 6.16 per cent annual growth. As reported by PTI, all other sub-sectors registered positive growth, demonstrating the diversified nature of India's services economy. The trial ISP points to broad-based growth across the services sector in April 2026, with nearly all categories registering positive growth. The index excludes services that are largely government-run, non-market activities or dominated by the informal sector, including public administration, defence and certain public services. Sectors with high weighting, such as information technology, retail trade and banking, also recorded robust gains, suggesting that services remained resilient despite global uncertainties.
The monthly services index, together with labour, industrial and infrastructure indicators, will strengthen the government's ability to assess economic activity in real time and improve the compilation of quarterly national accounts, according to Garg. As reported by Business Standard, Garg emphasized that "I am sure it will help in improving the robustness of the GDP number." Unlike manufacturing, which is tracked through the monthly Index of Industrial Production and surveys such as the PMI, India has no official monthly gauge for output across its dominant services sector. The ministry released the first sub-sectoral trial ISP for April 2026 on 14 July 2026, covering 19 sub-sectors of the formal economy with 2024-25 as its base year and spanning about 60 per cent of the formal services economy. The trial series will help assess data quality, test the robustness of the methodology and incorporate feedback from users before the index is finalized.
MoSPI indicated plans for further expansion of the services index, stating that a composite ISP would be introduced after assessing the stability of the trial series and expanding coverage. As reported by PTI, Dilip Singh, Additional General General, MoSPI, said the work is in progress to compile ISP of sub-sectors like 'health and residential care', education and ownership of dwelling based on administrative data to ensure coverage of more than 80 per cent of the services activities of the economy. The ministry emphasized that this trial phase will help establish the foundation for a more comprehensive services production index, with the ISP representing an important milestone in strengthening India's statistical system and improving the measurement of the services sector, which accounts for more than half of the country's economic activity. Singh also noted that the April data reflects the impact of the West Asia conflict. The trial series will help assess data quality, test the robustness of the methodology and incorporate feedback from users before the index is finalised.
