MoSPI Launches Monthly Index Of Services Production To Track Formal Services Sector

New Delhi, Jul 15 (KNN) The Ministry of Statistics and Programme Implementation (MoSPI) has launched the Index of Services Production (ISP) with 2024-25 as the base year, introducing a monthly indicator to track short-term performance in India's formal services sector.

MoSPI Launches Monthly Services Production Index

The first set of ISP data has been released for April 2026, covering 19 service sub-sectors. The index marks a significant step in strengthening India's macroeconomic statistics, with the formal services sector accounting for more than half of the country's economic activity.

According to MoSPI, the ISP provides, for the first time, a monthly measure of activity covering around 60 percent of the formal services sector.

A Technical Advisory Committee (TAC) on the ISP, constituted in May 2025, provided the conceptual and methodological framework for the index. The committee included representatives from academia, industry associations and relevant government ministries.

Most Service Sectors Report Double-Digit Growth

The data showed that 14 of the 19 service sub-sectors recorded double-digit growth in April 2026 compared with the corresponding month last year, while nearly all sectors registered positive growth.

Among the fastest-growing segments were Accommodation and Food Services (37.2 percent), Retail Trade (30.8 percent), Administrative and Support Services (28.7 percent) and Real Estate (27.7 percent).

Index Covers Formal Services Economy

The ISP is based on the National Industrial Classification (NIC) 2025 and covers formal sector enterprises across service sectors classified under Sections G to V. Activities dominated by the informal sector or core government functions are currently excluded.

The index draws on multiple data sources, including administrative records for sectors such as air transport, railways, banking and insurance; GST data for wholesale and retail trade, transport, telecommunications, real estate, information technology, professional services and hospitality; and the Annual Survey of Incorporated Services Sector Enterprises (ASISSE) for determining sectoral weights.

For price adjustment, MoSPI uses the Wholesale Price Index (WPI) for wholesale trade, while Consumer Price Index (CPI)-based deflators or appropriate proxies are applied to other service sectors.

Experimental Release To Refine Methodology

The ministry said the monthly ISP will initially be published on an experimental basis to assess data quality, test the robustness of the methodology and obtain feedback from stakeholders before the series is fully institutionalised.

MoSPI added that the indices for the railways, banking and insurance sectors are based on provisional monthly data and will be revised annually.

(KNN Bureau)