India to Launch Services Production Index

The India — Ministry of Statistics and Programme Implementation (MoSPI) in India has outlined plans to create an Index of Service Production (ISP) to measure the monthly output of the formal services sector, using 2024-25 as the base year. This initiative aims to fill a critical data gap, as currently there is no equivalent to the Index of Industrial Production (IIP) for the services sector, which is a major contributor to India's GDP and employment. MoSPI has released an approach paper, inviting feedback from stakeholders by May 5, 2026. The proposed methodology relies heavily on aggregated Goods and Services Tax (India) data, which has become a powerful barometer for economic activity since its implementation in 2017. A Technical Advisory Committee on ISP (TAC-ISP) was constituted in May 2025 and has deliberated on the approach, which covers over 40 sub-sectors including trade, transport, banking, and real estate. The new index is expected to provide policymakers and economists with a more accurate and timely understanding of the services sector's performance, moving beyond survey-based sentiment indices like WSP Global's HSBC Purchasing Managers' Index.