India to Launch Index of Services Production on July 14, 2026, to Track Services Economy Growth

India is set to introduce a new economic indicator aimed at tracking activity in its services sector more effectively, according to the Economic Times report. The Ministry of Statistics and Programme Implementation (MoSPI) will release the first Index of Services Production (ISP) on July 14, using 2024-25 as the base year.

The index is designed to provide a timely assessment of economic trends in a sector that contributes more than half of India's gross value added (GVA). The launch marks a significant expansion of the country's statistical framework for monitoring short-term economic activity.

What Is the Index of Services Production and Why It Matters?

The Index of Services Production has been developed to provide a high-frequency measure of output across India's services economy. Until now, policymakers and market participants have largely depended on the Index of Industrial Production (IIP) to assess monthly economic momentum.

Economists have often highlighted the absence of a comparable indicator for services despite the sector's dominant role in economic growth. The new index is expected to address this gap by offering regular insights into activity levels across major services segments.

Services Sectors Covered Under the New ISP

The ISP will measure output across a broad range of market-based services. These include trade, transport, telecommunications, accommodation, entertainment, financial activities and real estate services.

Collectively, these segments account for nearly two-thirds of the services sector's GVA, making the index a significant gauge of economic conditions. By covering these key industries, the ISP is expected to provide a more balanced understanding of overall economic activity beyond manufacturing and mining.

Sectors Not Included Yet

The initial version of the ISP will not cover the entire services sector. Education and healthcare services have been excluded because the required datasets and supporting statistical infrastructure are still being developed.

Their inclusion is expected in the future through the rollout of the Annual Survey of Incorporated Services Sector Enterprises (ASISSE). The index will also exclude informal services activities and non-market services such as public administration, defence, social work and central banking operations due to current data limitations.

Index of Services Production Details

Unlike many traditional statistical indicators that rely heavily on surveys, the ISP will draw extensively from administrative and digital databases. The Goods and Services Tax Network (GSTN) will serve as the primary data source, supported by operational information from railways, civil aviation, banking and insurance sectors.

Officials believe this approach will improve the reliability, frequency and timeliness of economic estimates. A committee chaired by NITI Aayog Fellow Debjani Ghosh has also recommended publishing the index initially on a trial basis with detailed sub-sector data and a release timeline of around 60 days after the reference month.

Read More: RBI Launches the Services and Infrastructure Outlook Survey for Q2 FY27.

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Conclusion

The launch of the Index of Services Production represents an important development in India's economic data ecosystem. The indicator is expected to complement the Index of Industrial Production and provide a clearer picture of activity across the country's largest economic sector.

Its introduction also aligns with broader efforts to modernise national accounts and increase the use of administrative data in official statistics. As India's economy becomes increasingly services-led, the ISP is expected to support a more comprehensive assessment of monthly economic conditions.

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