Index of Services Production: ISP trial on July 14, 2026

India plugs a key data gap in monthly economic tracking

India is set to launch the Index of Services Production (ISP), a new monthly indicator designed to track output in the country’s largest economic sector. The Ministry of Statistics and Programme Implementation (MoSPI) will release a trial series on 14 July 2026, marking the first time India will publish a high-frequency measure for services production on the lines of the Index of Industrial Production (IIP).

The aim is straightforward: bring services into the monthly economic dashboard in a structured way, similar to how IIP tracks industrial activity. With services contributing more than half of India’s Gross Value Added (GVA) and acting as a major driver of growth, investment and exports, the absence of a dedicated monthly services index has been a long-standing gap in India’s statistical system.

What the Index of Services Production (ISP) measures

MoSPI has described the ISP as a short-term indicator meant to measure changes over time in the volume of output produced by the services sector relative to a specified base period. Like the IIP, the ISP is designed to show movement in real output rather than report output in rupees.

In simple terms, the ISP is intended to function as a timely barometer of services activity, helping users assess whether services output is expanding, stable, or slowing. The ISP is also positioned as a complement to existing economic indicators, improving how policymakers and analysts monitor the economy between quarterly GDP releases.

Release date, base year, and the monthly publication plan

MoSPI will release the first trial series on 14 July 2026. The first official release is scheduled to cover April 2026, and the trial monthly indices will cover 2025-26 along with the month of April 2026.

The base year for the trial series is 2024-25, set to 100. MoSPI has also aligned this base period with the recently revised Consumer Price Index (CPI) series, which uses 2024 as its base year. The ISP will be released every month with a lag of around 60 days, balancing speed with the time needed to compile and validate input data.

After the initial release, MoSPI has said regular indices will be published on the 29th of each month, or the next working day if the 29th is a holiday.

What the ISP will cover in the early phase

The trial ISP is meant to track the formal services sector. The initial version covers major components of organised services activity, including areas such as trade, transportation and logistics, and finance-related services.

The coverage outlined in the available details includes segments such as trade, transportation and logistics, banking services, insurance activities, hospitality and tourism, real estate services, professional and business services, and communication and related sectors. Another description of the early framework notes that information and computer services will lead the indicator, with retail trade and administrative support also highlighted as significant components.

Health and education services are expected to be included later, once more data becomes available.

Data inputs and methodology: GST-led compilation and Laspeyres index

MoSPI’s framework indicates the ISP will use Goods and Services Tax (GST) data to track activity in the formal services economy. Using GST as an input can provide a consistent monthly footprint of formal sector transactions across many services categories.

The overall index will be compiled using a fixed-weight Laspeyres volume index. The weights will be derived from sectoral shares in GVA as published in the National Accounts Statistics (NAS). This approach mirrors standard index construction methods used for other high-frequency indicators, where weights reflect the relative size of sub-sectors in the economy during the base period.

Why the ISP matters for India’s services-driven economy

Services account for more than 50 percent of India’s GVA and have been the dominant force in the economy since 2013-14, according to MoSPI’s explanation of the index’s rationale. One cited context point is that, as per the Economic Survey 2024-25, the services share of GVA rose from 50.6 percent in FY14 to about 55.3 percent in FY25, with the sector growing faster than the other two broad sectors at roughly 7.2 percent.

Despite this scale, India has not had a monthly services output tracker comparable to the IIP. That has meant analysts and institutions often had to infer near-term services momentum indirectly, especially between quarterly GDP updates. The ISP is intended to reduce that gap by providing a structured, repeatable monthly read.

How the ISP complements IIP and supports GDP nowcasting

MoSPI has positioned the ISP explicitly as the services counterpart to the IIP. The idea is to allow users to track short-term changes in services output alongside short-term changes in industrial output, improving overall economic monitoring.

A monthly services index can also support short-term GDP forecasting and national income estimation by offering earlier signals about direction and pace. With a 60-day lag, the series is still not real-time, but it is a meaningful improvement in frequency compared with quarterly GDP data.

Market and policy relevance: who uses the numbers and how

For policymakers, the ISP is intended to support evidence-based decision-making by improving visibility into the services cycle. For businesses and investors, a consistent monthly indicator can help interpret demand conditions and operating momentum across services-heavy parts of the economy.

MoSPI has framed the launch as part of strengthening India’s statistical framework for the services economy. The index is also expected to become an input for analytical work by economists and researchers who track sectoral shifts, especially when services and industry show different trends.

Key facts at a glance

What to watch after the trial series begins

MoSPI has called the initial release a trial or experimental series, indicating early numbers are intended for users to evaluate the approach and coverage. As the monthly series stabilises, observers will track how comprehensive the early coverage is across services categories and how well the index captures turning points.

Another area to watch is the planned expansion of the index to include health and education. The pace and sequencing of that addition will matter for how fully the ISP reflects the broader services economy.

Conclusion

The ISP is a significant addition to India’s high-frequency economic indicators, bringing a monthly output measure to a sector that accounts for more than half of national GVA. MoSPI’s trial release on 14 July 2026, with a 2024-25 base year and a 60-day reporting lag, is set to become a key input for policy monitoring and short-term economic analysis, alongside the long-running IIP.