Full Breakdown
India Unveils First Monthly Index Tracking Services Production
7/15/2026, 11:43:28 AM
Launch of the Index of Services Production
On 14 July 2026 the Ministry of Statistics and Programme Implementation (MoSPI) released the inaugural Index of Services Production (ISP), a trial monthly indicator covering 19 formal services sub-sectors that together represent roughly 60 % of India’s services economy. The index uses the 2024-25 financial year as its base and will be published on the 29th of each month (or the next working day if the 29th falls on a holiday). The first release reports data for April 2026.
Background and Rationale
India’s services sector contributes more than half of national gross value added, yet the country previously lacked a high-frequency measure comparable to the Index of Industrial Production (IIP), which tracks manufacturing, mining and electricity. Policymakers have relied on quarterly GDP estimates or proxy indicators such as GST collections. The ISP is intended to fill this gap by providing a monthly view of short-term movements in formal services output.
Data Highlights from the April 2026 Trial
Fourteen of the 19 sub-sectors posted double-digit year-on-year growth. The strongest performers were:
- Accommodation and Food Services – +37.2 %
- Retail Trade – +30.8 %
- Administrative & Support Services – +28.7 %
- Real Estate – +27.7 %
Other notable gains included Telecommunications (+22.8 %), Wholesale Trade (+15.3 %), Banking (+12.2 %) and IT & Computer-related Services (+15.2 %). Two sectors contracted: Air Transport (-13.9 %) and Railway Transport (-0.4 %). Using sector-wise growth rates and weightings, DK Srivastava, chief policy advisor at EY India, estimated an overall services-sector growth of 20.8 % year-on-year for April 2026.
Why the Index Matters
The ISP offers policymakers, researchers and businesses a timely gauge of activity in the nation’s largest economic segment. By capturing short-term trends, the index can improve national-accounts estimation, support evidence-based policy decisions, and complement the IIP to provide a fuller picture of economic dynamics. MoSPI expects the coverage to expand beyond the current formal-sector focus, eventually incorporating informal services that employ a substantial share of the workforce.
Official Statements & Responses
MoSPI described the ISP as “an important milestone in strengthening India’s statistical system and improving the measurement of the services sector.” The ministry emphasized that the trial series will be used to assess data quality, test methodological robustness and incorporate stakeholder feedback before finalisation. The index was developed under the Technical Advisory Committee on Index of Services Production (TAC-ISP), constituted in May 2025 with members from academia, industry associations and government ministries. MoSPI also noted that price deflators such as the Consumer Price Index and Wholesale Price Index are applied to remove inflation effects from nominal revenues.
Criticism and Limitations
Analysts point out that the current ISP excludes large informal segments—street vendors, unorganized retail and many small hospitality businesses—limiting its comprehensiveness. Health, education and other government-run services are also omitted because they fall outside the GST framework, delaying the goal of covering roughly 80 % of the services sector.
Conflicting Reports & Gaps
The inaugural release does not publish a composite growth rate for the entire index; the 20.8 % figure is derived by external calculation rather than an official headline. Additionally, the methodology for weighting sub-sectors remains under review, leaving some uncertainty about the index’s long-term comparability.
Verbatim Quotes
- “The ISP represents 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,” — Ministry of Statistics and Programme Implementation
- “The release of sub-sectoral ISPs will provide, for the first time, a monthly measure of short-term movements in India’s formal services sector, with a coverage of about 60%,” — Ministry of Statistics and Programme Implementation
- “The index has been developed under the guidance of the Technical Advisory Committee on Index of Services Production (TAC-ISP), constituted in May 2025, with members from academia, industry associations and government ministries.” — MoSPI statement
- “The new index is expected to strengthen economic monitoring, improve national accounts estimation and support evidence-based policymaking.” — MoSPI press release
- “Highlighting the significance of the new indicator, the Ministry said the ISP marks a major step in modernising India’s statistical system and will provide policymakers, researchers and businesses with timely insights into the country’s largest economic sector.” — MoSPI announcement
