Index of Services Production (ISP) – New Macroeconomic Indicator

Why in News?

The Ministry of Statistics and Programme Implementation (MoSPI) will launch the Index of Services Production (ISP) in July 2026.

• ISP – It will be India’s 1^st monthly indicator designed to measure changes over time in the volume of output produced by the service sector, relative to a specified base period (2024‑25).
• It is designed as the services‑sector counterpart to the Index of Industrial Production (IIP).
• Technical Advisory Committee (TAC) – Constituted in May 2025.

Key Highlights

• Coverage – Key formal-service sector activities (wholesale and retail trade, transport, banking, insurance, telecom, hotels and restaurants, real estate, professional services, arts and entertainment).
• Data Sources – GST returns (major source), administrative data (Railways, Directorate General of Civil Aviation, Reserve Bank of India, and Insurance Regulatory and Development Authority of India) and ASISSE surveys.
• Methodology – Fixed‑weight Laspeyres volume index; weights are based on sectoral GVA contribution.

The Laspeyres volume index measures the change in physical quantities of goods or services over time, using the values of a specific base period as weights.

• Future Expansion – Health and education to be added after ASISSE (Annual Survey of Incorporated Services Sector Enterprises) data availability.

Quick Facts

References

1. DD News | ISP
2. The Hindu | ISP