India is adding a new gauge to its economic dashboard today, 14 July 2026. The National Statistics Office under the Ministry of Statistics and Programme Implementation is releasing the trial Index of Services Production, or ISP. It will track monthly output across formal service industries, much as industrial production data follows factories, mining and utilities.
The launch fills a long-standing gap. Services generate more than half of India’s Gross Value Added, but India has lacked one broad monthly output index for this sector. The official ISP FAQs say today’s release includes trial indices for 2025-26 and April 2026. Future releases are planned for the 29th of each month, normally with a 60-day lag.
Key Highlights
- ISP tracks changes in formal services output against a selected base period.
- The trial series uses 2024-25 as its base year.
- GST returns, administrative records and ASISSE survey data provide the main inputs.
- Health and education are absent from the opening monthly series.
- ISP complements IIP, but does not replace GDP, PMI or GST collection data.
What Is The Index Of Services Production?
ISP is a volume index. It tries to separate actual output movement from price increases, preventing inflation alone from appearing as higher production. Value-based information is converted into estimated constant-price output with suitable deflators.
This task is difficult because services range from banking and software to hotels, logistics and entertainment. The Economic Survey 2025-26 estimated services growth at 9.1% for FY26. A monthly index can reveal changes within that annual picture far earlier.
The figures are labelled “trial” because several data streams are being used statistically in new ways. MoSPI will review their stability and refine the framework before moving to a regular series.
Why Is ISP Like IIP For Services?
The similarity lies in purpose, not in identical design. IIP records changes in industrial production volumes. ISP seeks to do the same for service-producing industries. Both use a base period, sectoral weights, and monthly readings to show whether output has risen or weakened.
A base-year value is usually set around 100. Readings show movement relative to that period, while year-on-year growth compares the same month across two years. Users can study both the headline ISP and its sub-sector indices, as they do with IIP.
The difference is in measurement. A factory can report tonnes of steel or vehicle numbers. Many services have no physical unit. The MoSPI approach paper proposed turnover, quantity, and administrative indicators according to industry. The framework uses a fixed-weight Laspeyres volume index, with weights tied to sectoral GVA.
Which Industries And Data Sources Does ISP Use?
The framework covers wholesale and retail trade, hotels, transport, banking, insurance, telecommunications, information technology, real estate, professional services, administrative support, and arts and recreation. Information and computer-related services are expected to carry nearly one-fifth of the proposed weight, reflecting their large contribution.
Railways and air transport use physical activity data. Banking, insurance and selected transport categories draw from administrative records. Many other services rely on aggregated taxable outward supplies reported through GSTR-1. Service Accounting Codes are mapped to industrial classifications before price effects are removed.
The Technical Advisory Committee report page also shows the limits. GST-based measurement misses many informal and below-threshold businesses. Government administration, defence, personal services, several financial activities, gambling, and betting are outside the trial coverage.
Health and education are planned for later inclusion when suitable Annual Survey of Incorporated Services Sector Enterprises results become available. Their absence must be considered when reading the headline index.
Why Could ISP Change Economic Tracking In India?
Economists have usually combined GST collections, purchasing managers’ surveys, transport traffic, bank credit and company results to judge monthly services activity. These measures remain useful, but each answers a different question. ISP adds an official output series designed for consistent comparison over time.
The government can use it for short-term forecasting and quarterly national accounts. Businesses may follow sub-sector changes while planning recruitment, lending or expansion. Markets can compare ISP with IIP, inflation and employment figures to see whether growth is spread across industries.
The launch follows India’s rebased IIP series, which introduced a 2022-23 base year in June 2026. MoSPI also promoted today’s ISP release through its official announcement on X, describing it as a new high-frequency services indicator.
Early readings need caution. The series is experimental, informal activity has limited coverage, and some price deflators are imperfect. Still, India’s Services Production Index gives policymakers and businesses a missing monthly view of the economy’s largest segment. Its usefulness should rise as coverage expands and a longer history becomes available.
Frequently Asked Questions
What does ISP stand for?
ISP stands for Index of Services Production, measuring monthly changes in service-sector output across India.
When is the first ISP released?
The trial series begins on 14 July 2026, covering 2025-26 and April 2026 service activity.
How frequently will ISP be published?
MoSPI plans monthly trial releases, generally issued with about a 60-day reporting lag for users.
Does ISP include health and education?
Health and education remain outside initially, pending suitable ASISSE survey data for their future inclusion.
Is ISP the same as the services PMI?
No, ISP measures recorded output, while PMI reflects survey-based business conditions and expectations each month.
