The Ministry of Statistics and Programme Implementation (MoSPI) is preparing to launch Index of Services Production (ISP) next month to provide a monthly measure of short-term changes in the growth of formal services sector. In a statement, the ministry said that the ISP will act as a counterpart to the Index of Industrial Production. The base year of ISP is selected as 2024 -25. The trial monthly indices for the year 2025 -26 and for April 2026 are slated for release on 14TH of next month.

 

Thereafter, regular release of the monthly trial indices will be made with a lag of about 60 days on the 29th Day of every month. On the necessity of the index, the statement said, the services sector has emerged as the dominant force in the Indian economy, contributing over 50 per cent of the Gross Value Added since 2013-14. Considering its growing importance and potential, and in line with global practices, India needs a short-term indicator to measure the growth of the services sector to enable planners and policymakers to take suitable measures and guide its growth trajectory.

 

The Index of Services Production is a short-term indicator designed to measure changes over time in the volume of output produced by the services sector relative to a specified base period. It measures changes in the real output of service-producing industries over time. ISP will also serve as a high-frequency indicator of services sector growth and will provide time series data to enable better economic forecasting and business cycle analysis.