Government to Launch Monthly Production Index for Service Sector in July

New Delhi, June 24: The Ministry of Statistics and Programme Implementation (MoSPI) announced on Wednesday that it will launch the Index of Services Production (ISP) in July 2026. This initiative aims to measure short-term changes in the growth of the formal service sector on a monthly basis. To assist users, the ministry has also released a detailed FAQ document related to the index.

The FAQ explains that the Index of Services Production (ISP) is a short-term indicator designed to track changes in service sector output over time, compared to a specified base period. It reflects the real output changes in industries associated with the service sector.

The ISP will function similarly to the Index of Industrial Production (IIP) but will specifically cover the formal service sector on a monthly basis. This will provide regular and timely information on service sector activities and performance.

According to the ministry, the service sector has become a crucial pillar of the Indian economy, contributing over 50% to the country’s Gross Value Added (GVA) since 2013-14. Given the growing importance and potential of this sector, India required a short-term indicator that could regularly measure its growth in line with global standards.

This initiative will aid planners and policymakers in taking timely actions and determining the growth trajectory of the service sector. The ministry stated that a primary objective of the ISP is to provide complementary economic indicators alongside the IIP to understand short-term economic activities.

Additionally, by providing high-frequency information related to service sector performance, the ISP aims to strengthen the existing statistical framework, thereby enhancing support for policy-making and economic analysis.

The ISP will deliver timely information on the performance of service sector industries, making the monitoring of economic activities more effective and facilitating data-driven policy decisions. It will also serve as a high-frequency indicator of service sector growth, offering time-series data that can improve economic forecasting and business cycle analysis.