Starting next Tuesday, July 14, 2026, India's official statistical machinery will begin releasing the Index of Services Production (ISP), a new high-frequency economic indicator designed to gauge short-term momentum in the services sector. The ISP, with a base year of 2024-25, will cover nearly two-thirds of the gross value added (GVA) of the services sector, according to a report by Business Today.
Background: Filling a Gap in Economic Data
Until now, policymakers have relied solely on the Index of Industrial Production (IIP) to track short-term economic momentum, despite manufacturing being outpaced by the services sector. Services now drive over 50% of India's GVA, making the ISP a critical tool for more accurate and timely economic assessment.
Coverage and Data Sources
The ISP will include a wide range of services:
- Trade
- Transport
- Telecom
- Accommodation
- Entertainment
- Real estate
However, several significant segments are excluded for now:
- Education and health are left out pending data from the upcoming Annual Survey of Incorporated Services Sector Enterprises (ASISSE).
- The informal services sector and non-market services such as public administration, defence, social work, and central bank activities remain outside the index.
The index will be compiled primarily using the Goods and Services Network (GSTN) database and administrative datasets from railways, aviation, banking, and insurance.
Panel Recommendations
A panel led by NITI Aayog fellow Debjani Ghosh has recommended that the ISP be released both as an overall index and as sub-sectoral indices initially on a trial basis to gather stakeholder feedback. The panel also suggested that the ISP be published about 60 days after the end of the reference month.
| Aspect | Details |
|---|---|
| Launch date | July 14, 2026 |
| Base year | 2024-25 |
| Coverage | ~66% of services GVA |
| Excluded sectors (temporarily) | Education, health |
| Excluded sectors (permanent) | Informal services, non-market services (public admin, defence, social work, central bank) |
| Primary data sources | GSTN, railways, aviation, banking, insurance |
| Release lag | ~60 days after reference month |
The panel will also submit a detailed methodology and conceptual framework to measure the digital economy, as part of its broader mandate to prepare a roadmap for tracking this fast-growing segment.
Next Milestone
The ISP will be released on a trial basis starting July 14, with stakeholder feedback expected to refine the index. The panel's report on measuring the digital economy is anticipated in the coming months.
Sources:
