Introduction to the Index of Services Production (ISP)
The Ministry of Statistics and Programme Implementation (MoSPI) will release the first-ever monthly Index of Services Production (ISP) for 2025-26 on July 14. This index measures the output of India's services industry and is analogous to the Index of Industrial Production (IIP).
Publication Schedule
- The ISP will be published monthly, with the initial release on July 14, followed by regular releases on the 29th of each month.
- There will be a 60-day lag in the publication of these indices.
Scope and Framework
- The ISP will track short-term changes in service sector output, contributing over 50% to India's Gross Value Added (GVA).
- Trial indices will use 2024-25 as the base year, aligning with the revised Consumer Price Index (CPI) series.
- The index is compiled using a fixed-weight Laspeyres volume index, with weights based on sectoral GVA shares from National Accounts Statistics (NAS).
- Nine sub-sectors are excluded, including financial services (excluding banking and insurance), public administration, social work, and personal services.
Exclusions and Rationale
Certain services are excluded as they relate to core government functions or are dominated by non-market and informal sector activities.
Development and Advisory Committee
The ISP's conceptual framework was guided by a Technical Advisory Committee formed in May 2025, chaired by Debjani Ghosh, a fellow at NITI Aayog. The committee's full report will be released in early July.
Data Sources and Methodology
- Primary data sources include:
- Administrative records for railways, air transport, banking, and insurance.
- GST data on outward supplies for market services like trade, real estate, and telecommunications.
- Annual Survey of Incorporated Services Sector Enterprises for health and education services.
- Due to quarterly availability and lag, Service Producer Price Indices are not used as deflators; instead, the Wholesale Price Index (WPI) and sector-specific CPI measures are used.
