India Launches Trial Index of Services Production to Track Economy

The Ministry of Statistics and Programme Implementation launched the inaugural trial Index of Services Production (ISP) on July 14, 2026. This index serves as a proxy for Gross Value Added (GVA), providing monthly measurements of short-term movements in India's formal services sector to assist in real-time policy decisions. The system mirrors statistical frameworks used in the UK, EU, China, Japan, and South Korea.

Using the 2024-25 base year and data from GST, administrative records, and surveys, the trial currently covers about 60% of the services sector across 19 sub-sectors. Data for April 2026 revealed double-digit year-on-year growth in 14 of these sub-sectors. The highest gains occurred in accommodation and food (37.2%), retail trade (30.8%), administrative and support services (28.7%), and real estate (27.7%). In contrast, air transport contracted by 13.9% and railway transport declined by 0.4%.

Government officials plan to publish the ISP on the 29th of every month. To improve stability and data quality, the ministry intends to expand coverage to 80-90% by incorporating data from health, education, and dwelling services. Chief Economic Adviser V Anantha Nageswaran noted that while building price indices for services is a challenge, the monthly readings allow the government to distinguish a temporary economic wobble from a genuine turn.